The final plans of takeover of National Bank of Kenya (NBK) by KCB Group has been announced.
KCB said yesterday different stakeholders, including shareholders and some regulators, had given the nod to the acquisition set for completion over the next four weeks with the trading of the new entity set for September 30.
“The board of directors of NBK have approved the conversion of the 1.135 billion non-cumulative preference shares into ordinary shares at a ratio 1:1,” said KCB Group Company Secretary Joseph Kania in press notice.
The approval has been granted on condition that the offer in respect of the ordinary shares currently in issue is successfully completed.
KCB has set today as the closing date for the offer, with NBK shares set for suspension from trading at the Nairobi Securities Exchange (NSE) on September 2.
The merger has however elicited mixed reactions, with some MPs saying NBK got a raw deal and even proposed a recovery plan for the struggling lender.
Also, a number of minority shareholders constituting 22.38 per cent of National Bank’s ownership are yet to relinquish their shares for the offer made by KCB Group. The lender yesterday announced 77.62 per cent of National Bank shareholders were on board with the ongoing share swap.
National Bank currently has 55,ooo small shareholders.
Nonetheless, KCB CEO Joshua Oigara, said major shareholders and larger individual shareholders who account for 75.2 per cent of NBK had accepted the offer adding that KCB’s real target was to reach 90 per cent.
Despite the challenges, Acting National Treasury Cabinet Secretary Ukur Yatani said the Government would press ahead with the takeover deal by KCB.
The High Court has also dismissed a petition challenging the acquisition.
KCB maintained that it has met all the regulatory and shareholder approvals, including by the Competition Authority of Kenya. Regulatory approvals from the Central Bank of Kenya (CBK) are also currently under review, the lender said.
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