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Kampala and dar assure investors over kenya airways shares

Discussion in 'Biashara, Uchumi na Ujasiriamali' started by bzar, Apr 16, 2012.

  1. b

    bzar Member

    #1
    Apr 16, 2012
    Joined: Apr 12, 2012
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    Kenya
    Airways shareholders in Tanzania and
    Uganda with paper certificates will be
    eligible for the airline’s 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
    airline’s rights issue like their Kenyan
    counterparts whose stocks are held in
    electronic accounts.
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    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.
     
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