KCB Offers to Acquire National Bank
Kenya Commercial Bank (KCB) on Thursday offered to acquire 100% of National Bank of Kenya (NBK) through a share swap comprising of 10 ordinary shares of NBK for every 1 ordinary share of KCB.
"The KCB Group PLC has made an offer to acquire 100% of the ordinary shares of National Bank of Kenya (NBK). Both KCB & NBK are listed on the Nairobi Securities Exchange (NSE)," KCB tweeted.
This followed the move by the Nairobi Stock Exchange (NSE) to stop trading of both KCB and NBK shares on Thursday morning.
“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,” KCB head Joshua Oigara revealed.
“NSE wishes to inform investors, shareholders and the general public that we have halted trading of KCB and NBK shares as we await material disclosure from NBK affecting the two counters,” revealed an excerpt of NSE's statement.
However, KCB pointed out that their offer was yet to receive approvals from relevant regulatory agencies as well as the various shareholders.
"The offer is subject to shareholder and regulatory approvals and has been served on NBK," KCB revealed.
KCB is currently the biggest bank in Kenya in terms of assets and the proposed acquisition is set to make it even bigger.
“The proposed transaction to acquire National Bank of Kenya 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,” KCB's tweet revealed.
NBK back in March 2019 became the latest listed company to have issued a profit warning taking cue from Kenya Re and a host of other companies, when they cautioned their shareholders over the imminent profit fall exceeding 25% for the full year ended December 31, 2018.
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