KCB Group has made an offer to purchase complete ordinary shares of National Bank of Kenya (NBK).
Image: KCB has made an offer to acquire National Bank of Kenya. Photo: courtesy of adamr / FreeDigitalPhotos.net.
The offer, which has been served on NBK, is subject to shareholder and regulatory approvals.
KCB has proposed the acquisition via share swap of 10 ordinary shares of NBK for every one ordinary share of KCB.
KCB said that it has focused on creating new growth opportunities while reinforcing existing market capabilities.
National Bank was established in 1968 with full ownership by the Kenyan government. In 1994, the government decreased its shareholding by 32% (40 million shares) to members of the public.
In 1996, the bank further decreased its shareholding by 40 million shares to the public. At present, National Social Security Fund (NSSF) owns the 48.06% stake in the bank, while general public holds 29.44% interest and the Kenya Government owns 22.5% stake.
National Bank offers financial services to all sectors of the economy, and is a fiscal agent, registrar and market-maker in the secondary market.
The bank offers services such as personal banking, corporate banking and business banking to the customers. Under personal banking segment, the National Bank provides a range of products to meet transaction, saving, investing and borrowing needs.
National Bank’s Corporate and Institutional Banking department provides services to various sectors such as manufacturing, energy, education, and agriculture.
National Bank operates subsidiary called NatBank Trustee and Investment Services, which is incorporated in Kenya in 1995.
KCB Group CEO and MD Joshua Oigara said the transaction fits within KCB’s expansion strategy and gives it a stronger edge to play a bigger role in driving the financial inclusion agenda in the East African region while building a robust and financially sustainable organisation.
“The proposed transaction will further consolidate the banking sector in Kenya and will create stronger institutions enabling KCB to play a bigger role in the financial inclusion agenda. The acquisition would accelerate the Group’s growth ambitions and enhance value to all stakeholders,” said Oigara.