KCB Receives Shareholder Approval for NBK Acquisition

KCB Group, Kenya’s biggest lender by assets, on Thursday received approval from shareholders for its proposed acquisition of National Bank of Kenya in a 10-for-1 share swap transaction.

While the deal still requires the support of NBK’s shareholders and regulatory approval, it was passed unanimously at KCB’s AGM.

In it, KCB Group will be able to acquire all of NBK’s issued ordinary shares.

The approval follows the takeover offer made by KCB on April 18 for the acquisition of 100 percent of NBK’s shares through a share swap of 10 NBK ordinary shares for one KCB ordinary share.

This acquisition forms part of KCB’s ongoing strategy to delve into opportunities for new growth as they maximize returns from and invest in existing businesses.

“For us, the acquisition is an opportunity to strengthen the deposit base and lending capacity, increase cost efficiencies due to economies of scale and boost transactional revenue through leveraging of technology,” said KCB Group Chairman Andrew Wambari Kairu.

“This is an attractive, commercially viable proposition that provides the scale needed to compete and win in the rapidly evolving world of financial service.”

Shareholders approved the board’s recommendation of a final dividend of Sh2.50 per share during the AGM held in Nairobi. This translates to a total dividend per share of Sh3.50 and a total dividend of Sh10.7 billion for the year. Shareholders on the register are set to receive payment of the dividend on or before July 30 by close of business on April 29, 2019.

“We delivered on our promises for 2018 on the back of a definite lending strategy and an aggressive digital banking proposition,” said Mr. Kairu.

93 percent of the group’s after-tax profit was contributed by Kenya business, representing a 17 percent growth. On the other hand, international businesses collectively rose by 64 percent. The international businesses along with KCB Insurance Agency and KCB Capital are expected to contribute up to 20 percent of the group’s total profit by next year.

“Our focus is to proactively support our customers’ growth, enabling businesses to thrive and economies across the East African region to prosper,” said Joshua Oigara, KCB Group Chief Executive Officer and Managing Director.