Kenya Airways shareholders in Tanzania and Uganda with paper certificates will be eligible for the airlines rights issue like their Kenyan counterparts whose stocks are held in electronic accounts. Photo/FILE By MOSES MICHIRA ( email the author) Posted Sunday, April 15 2012 at 16:42 Kenya Airways shareholders in Tanzania and Uganda with paper certificates will be eligible for the airlines rights issue like their Kenyan counterparts whose stocks are held in electronic accounts. Share This Story Share RELATED STORIES Stockbrokers set to earn Sh310m from KQ rights Fund managers delay uptake of KQ rights as price holds firm The East Africa Security Exchanges Association (EASEA) on Friday sought to calm fears that investors in the two countries may have been left out of the rights issue since most of them still had paper share certificates. EASEA members wish to assure the shareholders of Kenya Airways that they stand ready to facilitate the trading of their rights in the markets in which they are listed, said the association in a statement. The organisation comprises stock exchanges of all East African Community member states. The association moved to allay fears that, unlike in Kenya where nearly all shares had been immobilised, KQ shareholders in the other East African countries could miss out on the rights issue because most of them still hold their shares in certificates. It is a requirement that all shareholders intending to take part in the rights issue immobilise their shares before they can participate in the cash call by national carrier. This rights issue has been of keen interest to the market intermediaries because it is the first to be floated across the three markets, according to Donald Ouma, head of product development at the Nairobi Securities Exchange. It is necessary to reassure investors in the other markets that their rights were intact, said Mr Ouma. Similar views were expressed by Lucas Otieno, an executive director at Faida Investment Bank. He said that the clarification from EASEA sought to inform the shareholders in the other East African markets, including Rwanda, that they still qualified to participate in the rights issue regardless of whether they had immobilised their shares or not. There are shareholders all over the region who may be left out of the issue because they have not deposited their certificates in their respective depositories, said Mr Otieno. Robert Baldwin, the chief executive at Crested Stocks in Uganda, said that he expects the Kenya Airways rights issue to succeed because most shareholders in the country were taking up their rights. We are seeing a positive response from KQ shareholders and expect the capital call to be successful, said Mr Baldwin. The national carrier targets to raise Sh20.6 billion from the ongoing rights issue that ends on April 27, with the shares expected to start trading at the Nairobi Securities Exchange on June 12.