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KCB proposes to acquire NBK in share swap deal

KCB Group posted 2018 profit of Sh24 billion while NBK nine-month NBK’s 2018 profit dipped by 84 percent to Sh21.97 million /FILE

NAIROBI, Kenya, Apr 18 – KCB Group has made an offer to acquire National Bank of Kenya through a share swap.

KCB proposes to make the 100 percent acquisition through a share swap of 10 ordinary shares of NBK for every 1 ordinary share of KCB.

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

“KCB Group, which has presence in six countries and a representative office in Ethiopia, has been keen to tap into new growth opportunities while reinforcing existing market capabilities,” said KCB CEO Joshua Oigara.

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 Oigara.

In a statement, NBK said the bank’s Principal Shareholders have committed to improving the Bank’s capital position which is expected to unlock the potential for the bank in boosting market position, improving customer value proposition as well as enhancing the Bank’s overall growth agenda.

“Further details of the proposed transaction will be issued through the requisite announcements that National Bank and KCB Group will  make pursuant to the provisions of the Capital Markets (Take-overs and Mergers) Regulations, 2002 and The Capital Markets (Licensing Requirements) (General) Regulations, 2002 and in a shareholders’ circular to be issued to the Company’s shareholders.”

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