Kenya Airways has no plans to sell stake in Precision Air
Kenya Airways stated it "is not selling its stake" in Precision Air when the carrier conducts an IPO at the Dar es Salaam Securities Exchange later in 2010 (Reuters/theeastafrican/International Business Times, 16-Jul-2010). The carrier is seeking to raise approximately USD28 million through the sale of 65% (or 55 million shares) of its authorised but unissued shares. The funds will be used to fund acquisitions of new aircraft for route expansion, aimed at capitalising on opportunities created by enhanced regional integration and demand for freight services amid economic expansion. Precision Air is 51% held by Tanzanian businessman, Michael Shirima, and 49% owned by Kenya Airways, with the dilution to result in Mr Shirima's ownership declining to 34.6% and Kenya Airways' to 34.2%. The carrier contributed just under USD1 million to Kenya Airways' profit before tax in the 12 months ended Mar-2010. Kenya Airways CEO, Titus Naikuni, stated three firms – Stanbic, Ernst and Young and NIC Capital – have been shortlisted to offer transactional services for the IPO.