National Bank Shares Rise by 25% After KCB Offer

The state-owned National Bank of Kenya shares rose by 25 percent after news for an offer of a buyout by KCB Group broke on Thursday afternoon. The bank shares closed trading at Sh5.50 a piece up from Sh4.39 at closing ion Wednesday, April 17 2019, reflecting a rise of 25.28 per cent.

On the other hand, KCB Group shares dropped 0.11 per cent over the same period.

The announcement states that KCB Group is set to acquire 100 percent of the ordinary shares of National Bank. If successful, the deal will see KCB become the biggest lender in the region.

“We KCB Group Plc hereby give notice that we intend to acquire 100 per cent of the ordinary shares with a par value of Sh5 of NBK,” KCB board announced in a statement approved by Capital Markets Authority (CMA).

The disclosure comes as a confirmation spanning about two-years of speculations that KCB was considering buying NBK, which has facing capital constraints. This comes as the promise by the National Treasury to pump in more money has delayed for almost a year now.

If shareholders holding at least 90 per cent of NBK shares accept the offer, KCB will apply to CMA to compulsorily acquire remaining shares.

Completion of the deal will require approval from CMA, Competition Authority of Kenya and Central Bank of Kenya as well as shareholders of the two entities.