1time sells subsidiary to former Board Directors; Kenya Airways gains

1time (-8.0%) shares were pushed lower by news during trading that the carrier has sold its Aeronexus Corporate subsidiary to two former Board Directors, Sven Peterson and Gavin Harrison, for USD217,851 (ZAR1.65 million).

1time stated the sale of the subsidiary will have no material effect on its financial position. As a result of the sale, investors became concerned the two former staff, who stepped down on 26-Jan-2010, are planning to launch their own carrier.

Mr Peterson and Mr Harrison meanwhile have strict limitations on what they can now do with their shares in the carrier. Each have 21.9 million shares in 1time, and are only allowed to sell the shares back into the market at low volumes. 

Elsewhere, Kenya Airways (+2.0%) gained yesterday. In the Middle East, Royal Jordanian (-4.5%) fell, while Air Arabia (+1.1%) made gains.

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Selected African and Middle Eastern airlines share price movements (% change): 27-Jan-2010