KCB Group Plc has listed an additional 142,979,717 shares at the Nairobi
Securities Exchange (NSE) following the successful acquisition of the
National Bank of Kenya (NBK).
Effectively, NBK shareholders who swapped their shares for those of KCB
will now be able to freely trade the new stocks at the bourse.
KCB got consent to acquire NBK from shareholders holding 297,130,033
issued ordinary shares out of 338,781,200 issued ordinary shares, representing 87.7% by the offer closure date on August 30, 2019. This brings to the total 3,209,043,204 the number of shares the biggest bank by
asset base in Eastern Africa has floated at the NSE.
“The listing will enhance the vibrancy of the capital market and will be instrumental in fueling continued business growth and the execution of the Bank’s expansion plans. It provides more shares and therefore liquidity on the counter, allowing more investors to be part of the Bank,” said KCB
Group Chairman Andrew Wambari Kairu.
The takeover is expected to give NBK a new lifeline as a business and fits
well within KCB expansion strategy.
KCB has started the process of integrating NBK into KCB, an exercise that is expected to be completed within the next 24 months, focusing on systems, processes, people and institutional governance. It is anticipated that as a combined institution, this gives KCB a stronger edge to play a bigger role in driving the financial inclusion and economic empowerment agenda in the East African region while simultaneously building a robust and financially sustainable organisation.
The conversion of the non-cumulative preference shares in the share
capital of NBK is in progress and the swap of the said shares will occur. On
completion of these processes, KCB will hold 1,432,130,033 ordinary
shares comprising 97.17% of the total issued share capital of NBK and
shall apply the provisions of the Capital Markets (Take-overs and Mergers)
Regulations, 2002 and Part XXIV, Division 4 of the Companies Act to
compulsorily acquire the remaining 41,651,167 issued ordinary shares of
NBK. Requisite notices in this regard will be sent to all concerned
shareholders.
