The government is now the single largest shareholder of Kenya Airways, following the rights issue that just attained its minimum subscription target.
KQ raised Sh14.8 billion in the capital call, representing 70 per cent of the Sh20.6 billion it needed after a number of its individual shareholders declined to take up their rights.
This could slow down its ambitious capital intensive expansion strategy.
The undersubscription saw the government receive all its subscription resulting in its shareholding reaching 29.80 per cent from 23 per cent.
But it is KLM, which was the largest single shareholder before the rights issue, that was forced to scale down its stake which would have seen it increase to 33 per cent.
“Whereas KLM subscribed for its full entitlement of new shares, its application was scaled back,” reads a press statement published in the dailies on Friday.
KLM’s shareholding in KQ rises marginally to 26.73 per cent up from 26 per cent.
In a fully subscribed rights issue, the shareholding before and after the rights is supposed to remain the same.
All other applicants will receive 100 per cent of the new shares they applied for.
The airline dispatch of share certificates and electronic crediting of CDS accounts of the new shares will be effected from June 14, 2012.
It will then list and start trading the new shares on the Nairobi Securities Exchange on June 21, 2012.