Wednesday, 28 September 2016

nya Airways in talks for stake sale to raise cash- CEO

Kenya’s national carrier Kenya Airway
says it it talking to about 3 or 4 foreign
institutional investors about buying a
stake in the cash strapped airline.

While speaking to Reuters, CEO Mbuvi
Ngunze said that the airlines has a
fantastic business across Africa
despite the hurdles it is facing.
Nguze added that the management of
the airline was encouraged by the
interest the business has received
from potential suitors attributing it to
Nairobi’s status as a major airport hub
in Africa.
The search for a strategic investor is
part of a plan, drawn up with the help
of U.S. investment bank PJT Partners,
to raise new debt and equity funds.
Though he did not reveal how much KQ
plans to raise from the sale, the
company had previously said it would
need abut $692 million.
The airlines largest shareholders are
the Kenyan government, which owns
29.8% and KLM which has 27%.
Kenya Airways has recorded four
consecutive years of losses as a result
of a poorly timed expansion strategy.
Already the company has been
reducing the size of tis fleet, selling
assets such as land and downsizing its
staff in a bid to turn around around is
fortunes.