This archive report was first published on 13 August 2019.
On April 18th, 2018, KCB Group made a surprise move by offering to acquire 100% of National Bank's shares through a share swap deal. The offer, which involved exchanging ten ordinary shares of National Bank for one share of KCB, was met with skepticism by some investors and members of the National Assembly Finance Committee.
Some shareholders even took the matter to court, filing a petition challenging the acquisition. They argued that the share swap and transfer were irregular because there had been no public participation, given that the National Treasury and National Social Security Fund held a significant stake in National Bank.
However, the high court ultimately dismissed the petition, ruling that the agreement complied with the Capital Markets Act Regulations of 2002. The court cited the fact that the agreement took into account the rules and regulations governing acquisitions of this nature.
As part of its efforts to convince National Bank shareholders to accept the offer, KCB Group placed an advertisement urging them to exchange their shares for KCB Group shares. This move marked the second time KCB had acquired a bank, following its takeover of five branches of Imperial Bank Limited with the approval of the Central Bank.
