This archive report was first published on 9 July 2019.
On June 19, KCB Group served National Bank with a takeover document detailing its bid to acquire 100% of the bank's ordinary shares. The document outlined the terms of the offer, including the re-designation of preference shares into ordinary shares.
The National Bank board has since issued an advisory circular to its shareholders, recommending they consider the offer based on several factors. The circular includes an independent advisor's report and an acceptance form, which will be sent to all shareholders and uploaded on the company's website.
The board's recommendation is based on the need for National Bank to meet regulatory capital requirements and grow its business, which KCB Group is willing to provide. The takeover bid is subject to regulatory approvals from the Capital Markets Authority, the Central Bank of Kenya, and the Competition Authority of Kenya.
KCB Group expects to complete its acquisition of National Bank by October, with the merged entity potentially having a balance sheet of 1 trillion shillings ($9.90 billion) by the end of 2022.
Shareholders are expected to make their own decision, with the board advising them to utilize the detailed information in the circular or seek the advice of a professional advisor.
