NAIROBI, Kenya, Jan 21 – South African lender Nedbank Group has submitted a tender offer to acquire roughly 66 percent of NCBA Group’s ordinary shares, which, if successful, would give Nedbank a controlling stake in the Kenyan financial services provider.
The remaining 34 percent of NCBA shares would continue trading on the Nairobi Securities Exchange (NSE).
The proposed acquisition values NCBA at 1.4 times its book value. Shareholders who accept the tender offer would receive 20 percent of their consideration in cash, with the remaining 80 percent paid through Nedbank ordinary shares listed on the Johannesburg Stock Exchange (JSE).
NCBA operates across Kenya, Uganda, Tanzania, Rwanda, Ivory Coast, and Ghana, with 122 branches serving more than 60 million customers. Nedbank, headquartered in South Africa, is one of the continent’s largest financial institutions, with operations across Southern Africa and international offices in London, Dubai, the Isle of Man, and Jersey.
“Nedbank is an ideal partner for our growth in East Africa. Their strong balance sheet will help us scale in current markets and explore opportunities in Ethiopia and DRC,” NCBA Managing Director John Gachora said.
The acquisition would allow NCBA to remain NSE-listed while maintaining its brand, governance, operational model, and management team.
“Kenya’s role as a regional financial hub, supported by strong institutions and a dynamic technology sector, makes it a natural anchor for Nedbank’s East African expansion, including Rwanda, Tanzania, and Uganda,” Nedbank CEO Jason Quinn said.
The deal is subject to regulatory approvals from the relevant central banks and is expected to close within six to nine months.
