KCB Group Plc has listed additional shares at the Nairobi Securities Exchange following the successful acquisition of the National Bank of Kenya.
The new 142,979,717 increases the number of shares the biggest bank by asset base in Eastern Africa has floated at the NSE to 3,209,043,204 .
Effectively, NBK shareholders who swapped their shares for those of KCB will now be able to trade the new stocks at the stock market. KCB got consent to acquire NBK from shareholders holding 297,130,033 issued ordinary shares out of 338,781,200, representing 87.7% by the offer closure date on 30th August, 2019.
The listing is expected to enhance the vibrancy of the capital market and fuel 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 also expected to give NBK a lifeline as a business and fits well within KCB expansion strategy.
“We see this friendly takeover as an enrichment of the banking heritage that we have created in the country in our more than 120 years of existence,” Mr Kairu said during the bell ringing ceremony to commence the listing of the new shares at the NSE trading floor on Friday, 4th October 2019.
He said it is anticipated to deliver more value to shareholders, customers, staff and all other stakeholders through synergies from the business lines and group operating structure.
The bell-ringing event was witnessed by KCB Group CEO and MD Joshua Oigara, NSE CEO Geoffrey Odundo, Capital Markets Authority CEO Paul Muthaura, Central Depository & Settlement Corporation Limited Acting. CEO Hilda Njeru, and Competition Authority of Kenya CEO Francis Wang’ombe.
NSE Chairman, Mr Samuel Kimani, said the acquisiation had created additional value to the KCB shareholders and boosted overall market participation.
NBK Share Capital
KCB has started integrating NBK into KCB, an exercise that is expected to be completed within the next 24 months. It will focus on systems, processes, people and institutional governance.
The new muscle 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 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 is expected to be done soon. 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 Capital Markets provisions to compulsorily acquire the remaining 41,651,167 issued ordinary shares of NBK.
Next Read >> The Next Financial Crisis Likely to Hit Kenyan Banks
editor [at] businesstoday.co.ke