Sunday, May 26, 2024

Kenya Airways says prospective foreign buyer is not US airline Delta

Co-Op post

National carrier Kenya Airways (KQ) has denied claims that it is selling 49 percent of its shares to Delta Air Lines.

The airline was responding to an X user who posted information claiming that Delta Airlines would be the airline’s new primary shareholder.

“This is incorrect. No such statement has been issued by our CEO. Follow our official channels for up-to-date information.” KQ stated.

The airline had earlier revealed that it is planning to sell 49 percent of its shares to an equity investor as it seeks to return to profitability.

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KQ CEO Allan Kilavuka, in an interview with Citizen TV, said numerous investors have expressed interest in the Kenyan carrier.

He added that the airline anticipates that the investor will be foreign, therefore necessitating the cap at 49 percent to ensure business continuity.

“We’re looking for an equity investor that can invest up to a maximum of 49 percent…that’s the maximum. The reason that the maximum is because the rules in Kenya don’t allow you to have an AOC or an airline operating certificate if you have more than 50 percent foreign ownership,” said Kilavuka.

Should the deal sail through, the new investor will become the airline’s primary shareholder, altering its current ownership structure.

Currently, the government holds a 48.90% stake in the airline, followed by KQ Lenders Company 2017 Limited at 38.09%, Kenya Airways employees at 2.44%, and Dutch airline KLM at 7.76%. The remaining shares are divided among the remaining seven shareholders.

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