Kenya Airways is preparing a Sh20.7 billion ($250 million) rights issue, having secured approval from the Capital Markets Authority, the Nairobi stock exchange as well as its key shareholders.
The board of the Kenyan carrier said it has received written commitments from the government of Kenya and KLM that they will take up their full entitlement in the rights issue, representing 49% of the transaction. The Kenyan government has a 23% ownership in the carrier while KLM has 26%.
Under the terms of the offering, Kenya Airways intends to raise Sh20.7 billion by way of renounceable rights issue of 1.45 million new ordinary shares at a Sh14 per share. The offer price represents a 32% discount to the volume of the weighted average Kenya Airways' share over the past 90 days.
Shareholders will have the right to subscribe for 16 new ordinary shares for every five shares held. The new share will rank pari passu with the existing ordinary shares.
CfC Stanbic bank and CfC Stanbic Financial Services are acting as lead transaction advisor. Citigroup Global Markets has been hired as global co-ordinator and international bookrunner.
Kenya Airways will launch the rights issue on 30 March. The carrier will announce the results of the share allocation on 30 May, while admission of the new share on the Nairobi stock exchange is planned for 12 June.
The net proceeds will finance the carrier's 10-year expansion plan as Kenya Airways seeks to consolidate its presence on the African continent.
Source: Commercial Aviation Online
