This archive report was first published on 28 August 2019.
Kenya Commercial Bank (KCB) has announced that it will waive the option to have National Bank of Kenya (NBK) delisted from the Nairobi Securities Exchange (NSE) as the takeover move enters its final stretch.
The decision was made after NBK's Board failed to present a resolution to shareholders to have it delisted during the June AGM.
According to KCB, it will proceed with the takeover and has already received acceptances of over 262 million shares out of the more than 338 million NBK shares, amounting to 77.6% of NBK shares being accepted as part of the share swap deal.
“… noting that the conditions relating to delisting and acceptances are legally capable of waiver, KCB has determined to waive the two conditions,” the public announcement signed by the KCB Board said.
The takeover of NBK is approaching its conclusion, with the offer date set to close on August 30. Regulatory approval from the Competition Authority of Kenya (CAK) has already been received, with the takeover deal now seeking approval from the Central Bank of Kenya (CBK).
According to the KCB announcement, the suspension of NBK shares at the NSE is expected to be done on September 2, with a final announcement on the KCB takeover of NBK to be delivered on September 13.
After the takeover, NBK will remain as a subsidiary of KCB, operating alongside KCB Bank Kenya Limited, its wholly-owned subsidiary.
However, questions have been raised by a National Assembly Committee regarding the takeover, citing that KCB has undervalued NBK in its assessment.
