The KCB Group PLC has made an offer to acquire 100 percent of the ordinary shares of National Bank of Kenya Limited (NBK). Both KCB and NBK are listed on the Nairobi Securities Exchange (NSE).
The offer is subject to shareholder and regulatory approvals and has been served on NBK.
KCB proposes to make the acquisition through a share swap of 10 ordinary shares of NBK for every 1 ordinary share of KCB.
KCB Group, which has presence in six countries and a representative office in Ethiopia, has been keen to tap into new growth opportunities while reinforcing existing market capabilities.
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KCB Group CEO and MD Joshua Oigara said the transaction fits within KCB’s expansion strategy and gives it a stronger edge to play a bigger role in driving the financial inclusion agenda in the East African region while building a robust and financially sustainable organisation.
“The proposed transaction will further consolidate the banking sector in Kenya and will create stronger institutions enabling KCB to play a bigger role in the financial inclusion agenda. The acquisition would accelerate the Group’s growth ambitions and enhance value to all stakeholders,” said Mr. Oigara.
KCB says it will provide further details in due course as required.
Meanwhile, the directors of National Bank of Kenya Limited say they will consider the offer in detail and make consultations and then seek the necessary approvals from the Shareholders and the regulators.
In a statement, the management says the National Bank’s Principal Shareholders have committed to improving the Bank’s capital position which is expected to unlock the potential for the bank in boosting market position, improving customer value proposition as well as enhancing the Bank’s overall growth agenda.
“Further details of the proposed transaction will be issued through the requisite announcements that National Bank and KCB Group will make pursuant to the provisions of the Capital Markets (Take-overs and Mergers) Regulations, 2002 and The Capital Markets (Licensing Requirements) (General) Regulations, 2002 and in a shareholders’ circular to be issued to the Company’s shareholders.” Noted the statement.
