This archive report was first published on 9 July 2019.
On July 9, 2019, the National Bank of Kenya (NBK) board chairman Mohamed Hassan urged shareholders to consider KCB Group's offer price of Ksh.3.80 per share, citing a lack of competing offers.
According to Hassan, the board is aware that no competing offers have been received, making it difficult to comment on the best obtainable prices from the market.
Despite NBK's independent valuation of Ksh.9 billion, KCB Group's offer represents a 38 percent discounting of the bank's value, with an independently valued price of Ksh.6.10 per share.
The takeover of NBK by KCB Group remains subject to regulatory approvals from the Competition Authority of Kenya, the Capital Markets Authority, and the Central Bank of Kenya.
Upon acquisition, KCB expects to run NBK as a distinct subsidiary for an initial period of two years before integrating the lender as part of its core business.
