Kenya Airways to be Bought out by End of 2020
The National Treasury has announced plans to buy out Air France-KLM, local banks and over 800,000 individual shareholders from Kenya Airways. This will lead to the delisting of Kenya Airways from the Nairobi Securities Exchange.
The buyout plan comes after parliament voted to nationalize the airline. The transport ministry is working with International Finance Corporation (IFC) in terms of determining the fresh valuation and buying price. The government targets to close the deal before the end of next year.
Under a model approved by parliament, Kenya Airways will be one of the four subsidiaries in an Aviation Holding Company. The other three are; Jomo Kenyatta International Airport, Aviation college, and Kenya Airport Authority.
Kenya Airways currently is 48.9% owned by the government, 38.1% by local banks, 7.8% by Air France-KLM, 2.4% by Kenya Airways employees and 2.8% by small investors.