Kenya’s National Bank plans to exit the Nairobi Securities Exchange once the takeover deal by KCB group is approved. The two listed banks are in the process of merging their businesses. The process will involve a share swap whereby National Bank shareholders will exchange ten NBK shares for one KCB Group ordinary share.
The takeover agreement between KCB group and NBK is subject to several conditions such as; conversion of 1.135 billion NBK preference shares into 1.135 billion ordinary shares of the bank, National Bank’s exit from the NSE upon the acceptance of KCB’s offer by owners of at least 75 per cent of shares in NBK, and lastly, regulatory approval from the Central Bank of Kenya, Capital Markets Authority, and Competition Authority among other regulatory bodies.
National Bank’s share price shot up in value to a peak of KSh5.56 per share on Wednesday 24th April following the announcement of the acquisition plan by KCB Group, East Africa’s leading bank in terms of asset value. As of 6th May, the stock closed at KSh4.81 which is still higher than its trading price during the pre-announcement period.
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