This archive report was first published on 6 September 2019.
Kenya Commercial Bank has secured approval from the Capital Markets Authority to acquire National Bank of Kenya, a move that will see NBK's operations come to an end in Kenya's financial services sector.
The approval was announced on September 6, 2019, and comes after KCB Group offered to swap every 10 of NBK shares with one of its listed shares.
According to KCB Group Chief Executive Officer Joshua Oigara, the group is thankful and excited for the goodwill and support received from shareholders, regulators, and other stakeholders.
With an acceptance rate of 87.7 per cent from NBK shareholders, surpassing the 70 per cent regulatory threshold, KCB Group will acquire the remaining 12.3 per cent shares at the prevailing rates.
As a result, NBK will be delisted from the Nairobi Securities Exchange, and the new KCB Group shares will be uploaded in its share register before the deal is sealed.
Beginning October, NBK will operate as a subsidiary of KCB Group, a move expected to last not more than two years as plans to fully assimilate it are put in place.
Paul Russo has been appointed as the managing director of NBK during the transition period, a move that has given hints of a possible reorganization of the bank's management.
The acquisition is part of KCB Group's ambition to consolidate its market leader position, with a targeted value position of Ksh.1 trillion, making it East Africa's largest bank.
