This archive report was first published on 7 September 2019.
On September 6, 2019, the Capital Markets Authority (CMA) approved Kenya Commercial Bank's (KCB) announcement to acquire National Bank of Kenya (NBK) shares. The acquisition is set to be completed in the next two years.
According to KCB, 87% of NBK shareholders accepted the offer to swap their shares for KCB stocks by the August 30, 2019, deadline. This means that KCB will hold 97.17% of NBK's total issued share capital after the acquisition.
However, KCB will now compulsorily acquire the remaining 12% of NBK shares using the provisions of the Capital Markets (Take-overs and Mergers) Regulations, 2002 and Part XXIV, Division 4 of the Companies Act.
As part of the integration process, KCB will streamline human resources, systems, processes, and procedures across the two entities. The bank will also rationalize its branch network to enhance service delivery to customers and examine the overall human resource needs to enable efficient business organization.
NBK shareholders who swapped their shares for KCB stocks will be able to freely trade the new stocks at the Nairobi Securities Exchange (NSE) from next week.
