KCB Group Offers to buy National Bank of Kenya via Share Swap

KCB Group To Hold Virtual AGM in June

KCB Group CEO Joshua Oigara

The Nairobi Securities Exchange lifted the trading halt of KCB Group and National Bank of Kenya Thursday afternoon “Following receipt of notice from KCB of its intention to acquire all the ordinary shares of NBK.”

In its Notice of Intention, KCB stated that “We intend to acquire 100% of the ordinary shares with a par value of Kenya Shillings Five KES 5:00 (the offer shares) of National Bank of Kenya limited (NBK).”

According to KCB Group, the offer shall be way of a share swap of 10 ordinary shares of NBK for every 1 ordinary share of KCB.

“In all respects, the offer shares will be acquired free from all liens, charges, encumbrances and other interests and together will all rights now and hereafter attaching thereto including the right to receive all dividends and other distributions hereafter declared made or paid.”

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.

Early Thursday morning, the NSE suspended the two financial institutions from trading as they ‘await material disclosure from NBK affecting the two counters’.

The offer is subject to shareholder and regulatory approvals and has been served on NBK.

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