KCB Shareholders Okay Share Swap Acquisition Of National Bank

How Banks lock in defaulters

Acquisition has been part of Kenya Commercial Bank’s (KCB) ongoing strategy to explore opportunities for new growth while investing in and maximizing the returns from our existing businesses.

On April 18, 2019, KCB Group made an offer to acquire 100% of the Shares of Nationa Bank of Kenya by way of a share swap of 10 ordinary shares of NBK for every 1 ordinary share of KCB with the transaction, subject to regulatory and NBK shareholders. KCB Group shareholders have finally approved a proposal to acquire 100% of
the issued ordinary shares of National Bank of Kenya Limited (NBK) via the share swap.

“For us, the acquisition is an opportunity to strengthen the deposit base and lending capacity, increase cost efficiencies due to economies of scale and boost transactional revenue through leveraging of technology. NBK
maintains a strong deposit franchise and a wide branch network. This is an attractive commercially viable proposition that provides the scale needed to compete and win in the rapidly evolving world of financial service,” said KCB Group Chairman Mr. Andrew Wambari Kairu.

Shareholders further approved the final dividend of KShs 2.50 per share as recommended by the Board in the 2018 Annual General Meeting (AGM) held in Nairobi adding up to KShs.3.50 the total dividend per share and KShs. 10.7 billion as the total dividend for the year. The dividend will be paid on or before July 30, 2019, to shareholders on the
register as of the close of business on April 29, 2019.

“We delivered on our promises for 2018 on the back of a definite lending strategy and an aggressive digital banking proposition. This success was not without headwinds such as the aftermath of the 2017 electioneering period in Kenya and changes to the regulatory landscape, both somewhat redefining the business growth trajectory,” said
Mr. Kairu.

KCB Group assured its shareholders of the strong future driven renewed investor confidence and improved performance across all businesses.

“Our focus is to proactively support our customers’ growth, enabling businesses to thrive and economies across
the East African region to prosper, and ultimately, the realization of financial ambitions,” said KCB Group Chief Executive Officer and Managing Director Joshua Oigara.

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Inzillia is an avid reader and researcher on matters finance, business, government affairs, culture, and human interest stories. Poetry too. Email: inzillia@urbwise.com