Restructuring: Kenya Airways Shareholders Accept 'Haircut'
On a cloudy August 7 morning, the day before the 2017 general elections, another vote took place at Embakasi in Nairobi.
Kenya Airways shareholders voted on a capital restructuring that effectively diluted their shareholding by up to 95 per cent in the short term.
The meeting, a shareholders Extraordinary General Meeting (EGM), started with 279 members present, with the number growing as more people cleared from the registration and gift area into the large tent where the meeting was.
Shortly after the start, Chairman Michael Joseph gave a speech imploring shareholders to follow the advice of the board, and unanimously vote in favour of the lengthy resolution, as it was the only solution that could keep the airline afloat.
As the meeting progressed into a question and answer session, shareholders seemed to have a lot of confidence in Mr Joseph, who has been on the board for just under a year and Chairman for six months.
While they were, as expected, angry about the decline of the airline and the erosion of its balance sheet by consecutive loss-years, they seem satisfied that he and Sebastian Mikosz, the new CEO, were the right people to turn the airline around.
Source and Details: Daily Nation