This archive report was first published on 3 September 2019.
On September 2, 2019, the Central Bank of Kenya (CBK) granted approval for KCB Group to acquire 100% of National Bank (NBK), addressing concerns raised by MPs and the public.
According to Section 13(1) (e) of the Banking Act, the regulator's approval effectively paves the way for the completion of the deal within KCB's timelines.
CBK stated that the acquisition will strengthen both institutions by leveraging their respective domestic and regional corporate, public sector, and retail franchises.
With the government controlling 70.6% of NBK through the Treasury's 22.5% shareholding and National Social Security Fund's 48.1% stake, the sale has been officially rubberstamped.
At 77.62% of NBK's total issued shares, KCB has already met the minimum threshold required to declare the offer a success, triggering the conversion and pushing the acceptance level above 90%.
This gives KCB the legal powers to compulsorily buy out any dissenting NBK shareholders.
Following the acquisition, KCB plans to list the additional shares through which it is executing a swap for NBK's equity on September 30.
On September 13, KCB will announce the offer results, while the swapped shares will be credited into the trading accounts of NBK shareholders on September 27.
Once KCB acquires National Bank, it is expected to conclude the deal to acquire Imperial Bank, which has been under receivership.
