Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
From right to left: National Bank Managing Director & CEO Wilfred Musau, National Bank Chairman Mohamed Hassan and the Bank's Company Secretary Habil Waswani at the Bank;s 50th Annual General Meeting where the Bank's shareholders approved the conditional conversion of preference shares into ordinary shares upon the completion of a proposed Take-Over bid by KCB Group or a competing bid.

Finance

NBK shareholders approve conversion of shares ahead of KCB take-over

L-R: NBK Managing Director & CEO Wilfred Musau, Chair Mohamed Hassan and Company Secretary Habil Waswani/Courtesy

NAIROBI, Kenya, Jun 14 – National Bank of Kenya Limited (NBK) shareholders have approved the conditional conversion of preference shares into ordinary shares upon the completion of a proposed take-over bid by KCB Group or a competing bid.

According to the Offer Statement received by NBK, KCB intends to acquire up to 100% of the ordinary shares of NBK through a share swap of one (1) ordinary share of KCB for every ten (10) ordinary shares of the NBK.

The Offer requires that the 1,135,000,000 preference shares in the capital of the Bank held by the two principal shareholders – the National Treasury (“GOK”) and National Social Security Fund (“NSSF”) should be converted on a one/one basis into 1,135,000,000 new ordinary shares at the Completion of the Take Over Bid.

National Bank Board Chairman Mr. Mohamed Hassan said that the Bank remains a strong institution with supportive shareholders and customers. The bank also receives significant support from regulators.

“The management and staff of National Bank have our full support as they continue delivering solutions to customers. The preservation of value remains the most important tenet for all the stakeholders and the board is working with management to ensure that ongoing business initiatives continue unabated,” he assured.

According to the Chairman, the take-over bid from KCB has outlined several predicating factors. Some of the key factors include the proposal that National Bank will continue to operate as a separate subsidiary of KCB (for a while) and therefore service delivery to its customers will remain un-interrupted. Equally, the combined balance sheets of the two banks will increase the capital capacity of both banks.

According to Capital Markets Regulations (Take-Overs and Mergers, 2002), National Bank shareholders should receive a detailed Take-Over Bid document by KCB in due course. National Bank’s board will analyze the bid and give appropriate recommendations to its shareholders. The shares are personal to the individual shareholders and therefore the respective shareholders will make their own decisions.

Finally, the completion of the proposed transaction as a result of KCB’s Take-Over Bid or a Competing Bid is subject to NBK’s shareholders acceptance as well as regulatory approvals from, among others, the Capital Markets Authority, the Central Bank of Kenya, and the Competition Authority of Kenya.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...