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.
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.
