Kenya Airways in talks for stake sale to raise cash- CEO

Kenya’s national carrier Kenya Airway says it it talking to about 3 or 4 foreign institutional investors about buying a stake in the cash strapped airline.

While speaking to Reuters, CEO Mbuvi Ngunze said that the airlines has a fantastic business across Africa despite the hurdles it is facing.

Nguze added that the management of the airline was encouraged by the interest the business has received from potential suitors attributing it to Nairobi’s status as a major airport hub in Africa.

The search for a strategic investor is part of a plan, drawn up with the help of U.S. investment bank PJT Partners, to raise new debt and equity funds.

Though he did not reveal how much KQ plans to raise from the sale, the company had previously said it would need abut $692 million.

The airlines largest shareholders are the Kenyan government, which owns 29.8% and KLM which has 27%.

Kenya Airways has recorded four consecutive years of losses as a result of a poorly timed expansion strategy.

Already the company has been reducing the size of tis fleet, selling assets such as land and downsizing its staff in a bid to turn around around is fortunes.

Reuters