In Summary
  • The lender said on Thursday it had made an offer to acquire 100 percent of the ordinary shares of NBK.

  • Both KCB and NBK are listed on the Nairobi Securities Exchange.

  • If offer is accepted by shareholders holding at least 90 percent of NBK shares, KCB will apply to CMA to compulsorily acquire remaining shares.

The Kenya Commercial Bank has offered to buy out the National Bank of Kenya.

The deal will see Kenya’s biggest bank by asset base become the biggest lender in the region.

The lender said on Thursday it had made an offer to acquire 100 percent of the ordinary shares of NBK.

Both KCB and NBK are listed on the Nairobi Securities Exchange (NSE).

"KCB proposes to make the acquisition through a share swap of 10 ordinary shares of NBK for every 1 ordinary share of KCB," the bank said in a statement

“The offer shall be by way of a share swap of 10 ordinary shares of NBK for every one ordinary share of KCB.”

CONFIRMS SPECULATION

The disclosure confirms about two-year speculations that KCB was considering buying NBK, which is facing capital constraints.

The National Treasury’s promise to pump in more money has delayed to close to a year now.

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