Treasury and NSSF Endorse KCB Takeover Proposal

The majority shareholders in the National Bank of Kenya – the National Social Security Fund (NSSF) and the National Treasury – are lending their support for the bank’s acquisition by KCB Group.

Aside from the two institutions holding a combined stake of 93.23 percent in NBK, are also among KCB’s largest investors.

“Furthermore KCB’s two most significant shareholders happen to be the two most significant shareholders at NBK. It is also the government policy to support mergers within the banking sector in order to create strong players who will support the realization of Vision 2030,” NBK’s chairman Mohamed Hassan wrote to shareholders in a circular.

“Therefore, the board and management of NBK are of the view that, subject to the agreement of terms and shareholders and regulatory approvals, the successful completion of the proposed transaction would be of great benefit to all the customers and stakeholders of NBK and KCB.”

The chairman noted that it was the board’s unanimous recommendation for shareholders to vote in support of the deal.

The lender says that on the basis of different scenarios, the proposed takeover has each share valued at either Sh3.78, Sh4, and Sh4.49.

“The information on the strike price is yet to be advised, but it is expected that this will be calculated based on the volume weighted average share prices for the immediate preceding 90 calendar days (or such other period that will be advised) up to and including the date preceding the date of the offer’s statement (May 6, 2019),” NBK said.

Following the success of the deal, NBK investors will gain shares equal to a 4.59 percent interest in KCB.