Kenya’s biggest lender by assets, KCB Group and National Bank of Kenya (NBK) have been suspended from trading their Shares on the Nairobi Securities Exchange.
“This is in line with clause 9.4.2 (ii) a, of the NSE Equity Trading Rules,” said the NSE in a public Notice as they ‘await material disclosure from NBK affecting the two counters’.
9.4.2 Security Halts
The Exchange may temporarily halt trading in one or more securities in the following circumstances:
i. Upon the request of the Authority;
ii. By the Exchange:
a) prior to obtaining a clarification from the company on a report regarding the company which has been brought to the attention of the Exchange;
b) when there are unusual market movements in price/volume of a security; and
c) where in the opinion of the Chief Executive circumstances exist or are about to occur that could result in other than the transparent, fair and orderly trading of the specific securities.
In 2017, KCB Group had made an expression of interest in acquiring a controlling stake in NBK through a share swap.
However, the Capital Markets Authority (CMA) in a statement clarified that “No regulatory filings have been made to the Authority by KCB Group regarding this matter and no confirmation of the existence of such a transaction has been received.”
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