This archive report was first published on 10 July 2019.
On July 10, 2019, National Bank of Kenya (NBK) issued an advisory circular to its shareholders regarding the bid by Kenya Commercial Bank (KCB) for a 100% acquisition of its business.
The circular, which includes an independent advisor's report, letters to shareholders, and acceptance forms, aims to enable shareholders make informed decisions about the bid.
According to the circular, NBK requires additional capital to meet regulatory requirements and grow its business, which KCB's proposal could provide.
Under the proposed takeover, NBK would continue to operate as a separate subsidiary of KCB for two years, and the two banks would combine their balance sheets to increase their capital capacity.
The transaction is subject to regulatory approvals from the Capital Market Authority (CMA), the Central Bank of Kenya, and the Competition Authority of Kenya.
“NBK remains a strong bank, and it requires additional capitals to meet regulatory capital requirements and to grow its business, which can be provided by KCB,” NBK chairman Mohamed Hassan said in a letter to shareholders.
