Kenya’s government and domestic lenders agreed to convert $405.3 million of Kenya Airways Plc debt into equity, giving the state a controlling stake and diluting other shareholders including Air France-KLM. reported Bloomberg.
The Kenyan government has given $238.1 million in loans to Kenya Airways, which will increase its stake to 48.9 percent from 29.8 percent and the lenders owed $217.2 million will convert part of that debt into a 38.1 percent holding.
With this Kenyan Government has become the major shareholder of the Kenya airways and liquidates other stake holders including Air France-KLM’s 26.7 percent stake.
The carrier posted a 26.2 billion-shilling ($253 million) loss in 2016, the biggest in Kenyan corporate history.