NCBA Group PLC, a leading financial services provider in East Africa, has received a Strategic Investment Proposal and Notice of Intention (NOI) from South Africa’s Nedbank Group Limited.
The proposal outlines a tender offer to acquire approximately 66% of NCBA’s ordinary shares, giving Nedbank a controlling interest. The remaining 34% of NCBA shares will stay listed on the Nairobi Securities Exchange (NSE).
“Nedbank intends to acquire 1,087,362,891 ordinary shares of NCBA Group PLC representing approximately 66% of the issued shares,” the offeror’s statement confirmed.
Transaction Valuation and Offer Structure
The planned acquisition values NCBA at 1.4 times its book value. Shareholders participating in the tender offer will receive 20% of their consideration in cash, with the remaining 80% settled in Nedbank shares listed on the Johannesburg Stock Exchange (JSE).
NCBA’s Regional Footprint
NCBA operates across Kenya, Uganda, Tanzania, Rwanda, Ivory Coast, and Ghana, with 122 branches serving over 60 million customers. The Group is recognised for its strong digital banking services, asset finance leadership, and investment banking expertise.
Since 2021, NCBA has averaged a ~19% return on equity, holds KES 665 billion in assets, and disburses over KES 1 trillion in digital loans annually.
NCBA Group Managing Director John Gachora said:
“Nedbank is an ideal partner for our growth in East Africa. Their strong balance sheet and ESG leadership will help us scale in current markets and explore opportunities in DRC and Ethiopia.”
Nedbank’s Expansion Strategy in East Africa
Headquartered in Johannesburg, Nedbank is among Africa’s largest financial institutions, with listings on the JSE and Namibia Securities Exchange, and international offices in London, Dubai, Isle of Man, and Jersey.
Nedbank CEO Jason Quinn noted:
“East Africa is a key growth region. Partnering with NCBA allows us to diversify beyond Southern Africa and anchor our expansion in Kenya, Rwanda, Tanzania, and Uganda.”
Nedbank serves nearly 8 million clients, offering wholesale and retail banking, insurance, asset management, and wealth management solutions.
Market Synergies and Customer Impact
The partnership is expected to deliver significant synergies:
- Enhanced corporate and investment banking capabilities through Nedbank’s global presence.
- Expanded lending capacity and infrastructure support for NCBA.
- Career growth opportunities for NCBA staff across multiple geographies.
- Continued preservation of NCBA’s brand, governance, and management team.
Regulatory Approvals and Timeline
The transaction remains subject to approvals from central banks and regulators across relevant jurisdictions, including the Capital Markets Authority (CMA) and Competition Authority of Kenya (CAK). Completion is expected within six to nine months.
