KCB Group set to acquire National Bank of Kenya

Joshua Oigara, Group CEO of KCB Group
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Kenya Commercial Bank Group has today made an offer to acquire 100% of the ordinary shares in National Bank of Kenya (NBK). Both KCB and NBK are listed on the Nairobi Securities Exchange (NSE) and had their shares suspended from trading before the announcement.

The offer is however, subject to shareholder and regulatory approvals and has been served on NBK. In the offer, KCB proposes to make an acquisition through a share sawp of 10 ordinary shares of NBK for every every 1 ordinary share of KCB.

According to the KCB Group CEO, Joshua Oigara, the transaction fits within the bank’s expansion strategy and gives it a 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 organization.

He continued to say, “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.”

This follows government’s plan to sell off 26 state-owned corporations which have been performing poorly to private investors. Parastatals which had been approved for sale by the Privatisation Commission includes, National Bank of Kenya, Consolidated Bank of Kenya, Kenya Meat Commission, Development Bank of Kenya, East African Portland Cement, Kengen, Kenya Pipeline Corporation, Kenya Ports Authority, and five sugar millers: Chemilil, Sony,Nzoia, Miwani and Muhoroni. Others are Agrochemical and Food Corporation, New Kenya Co-operative Creameries, Numerical Machining Complex and Isolated Power stations, hotels (Kabarnet hotel, Mt Elgon Lodge Ltd, Golf Hotel Ltd, Sunset Hotel Ltd, Kenya Safari Lodges and Hotels Ltd) and the Kenya Tourism Development Corporation associated companies which include International Hotels Kenya Ltd, Kenya Hotels Properties Ltd, Mountain Lodge Ltd and Ark Ltd.

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