KCB Group latest move to acquire the collapsing National Bank is one that has not been welcomed well by the legislators. They faulted KCB’s valuation of NBK at Sh6 billion against an independent valuation of Sh9 billion which the Finance and National Planning Committee said the offer given by KCB does not reflect the fair value of NBK which is a strong lender with 86 branches across the country.
Finance and National Planning Committee, chaired by Kipkelion East MP Joseph Limo had been investigating the proposed acquisition and the recommendations against the takeover presented before the House revealed that the takeover deal undervalued NBK and is not in the best interest of workers, taxpayers, its staff and minority shareholders.
Responding to the matter, KCB group noted that it is willing to discuss the details of the transaction before parliament as it endeavors to meet the regulatory requirements involved.
“KCB Group Plc has taken note of the contents of the report by the National Assembly Departmental Committee on Finance and National Planning, which was tabled in the House on August 7, 2019, regarding our offer to acquire 100% of the ordinary shares of National Bank of Kenya Limited (NBK).
“KCB has sought and look forward to being given a chance by Parliament to discuss this transaction, which started when KCB Group made the acquisition offer on April 18, 2019. We are conscious that Parliament has a role to play in national governance and we shall endeavor to uphold the relevant legal and regulatory requirements at every stage of the transaction. The offer was made in the best interest of KCB and NBK shareholders,” read a statement from KCB Group.
The legislators had advised the government seeks cash to recapitalize NBK, tasking the Treasury to seek alternative ways of funding NBK to ensure that it is compliant with the Banking Act capital ratios so as to continue lending and taking in more deposits.