This archive report was first published on 10 July 2019.
On 10th July 2019, National Bank informed its shareholders that they have until the end of July to submit their offer acceptance forms for the proposed takeover by KCB bank.
The takeover deal, which aims to acquire 1,473,781,200 ordinary shares of NBK, will be considered successful after NBK’s shareholders with a 75 per cent stake in the bank accept the offer.
According to the investment advisor Standard Investment Bank, National Bank’s fair value price is KSh6.10 per share, while KCB group’s offer price of about KSh3.80 per share is substantially below the stock’s fair value.
Despite the undervaluation, the board of NBK recommends the offer to shareholders, citing the need for more capital to meet regulatory requirements and grow the business.
The transaction will need approval from the Capital Markets Authority, Nairobi Securities Exchange, Central Bank of Kenya, the Competition Authority and shareholders before it is finalized.
