Business
World Bank’s investment arm buys a 7.4% stake in Kenya Airways
Kenya Airways is also targeting US$2.2 billion from banks over the next five years to buy new planes and support its expansion plan.
The airline had on Tuesday sent a statement that said: “Among the key non-shareholders who bought its rights is the International Finance Corporation, which acquired 2.5 million rights and subsequently applied for 140.5 million additional shares.”
The Kenya government, which owns 23 percent of Kenya Airways shares, and Dutch airline KLM, which has a 26 percent stake, have already given irrevocable commitments to take their full rights.
This would mean that IFC’s purchase, which is equivalent to 10 percent of the 1.4 billion shares on offer, will raise the guaranteed uptake to 59 percent of the US$250 million cash call.
The transaction arrangers have set a minimum target of 70 percent uptake to consider the share sale a success.
Results of the rights offer, which closes on Friday, will be made public on May 30.
Source: Africa Review
