KCB Group Plc has listed an additional 142,979,717 shares at the Nairobi Securities Exchange (NSE) after its successful acquisition of the National Bank of Kenya (NBK).
This new development was announced at a bell-ringing ceremony at NSE that was was witnessed by KCB Group CEO 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.
This means that NBK shareholders who swapped their shares for those of KCB will now be able to trade the new stocks at NSE. KCB recently received approval from the Central Bank of Kenya (CBK) to acquire NBK from shareholders holding 297,130,033 issued ordinary shares out of 338,781,200 issued ordinary shares, representing 87.7% by the offer closure date on August 30, 2019. This brings to a total of 3,209,043,204 shares that KCB has floated at the NSE.
“The listing will enhance the vibrancy of the capital market and will be instrumental in fueling 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.
KCB has started the process of integrating NBK into KCB, an exercise that is expected to be completed within the next 24 months. KCB appointed insider Paul Russo to head NBK for the transitional 2 year period.
The conversion of the non-cumulative preference shares in the share capital of NBK is in progress and the swap of the said shares will take place after that. 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 provisions of the Capital Markets (Take-overs and Mergers) Regulations, 2002 and Part XXIV, Division 4 of the Companies Act to compulsorily acquire the remaining 41,651,167 issued ordinary shares of NBK. Requisite notices will be sent to all concerned shareholders.