NCBA stock: Nedbank completes 66% takeover of Kenyan lender

Nedbank Group has completed its acquisition of a 66 percent stake in NCBA Group, bringing the Kenyan banking group under the South African lender's control. The transaction was completed on Tuesday, November 3, through a block trade on the Nairobi Securities Exchange, according to AllAfrica.

Ownership changes after settlement

Nedbank acquired 1.087 billion NCBA shares after shareholders tendered 1.316 billion shares, equivalent to 79.9 percent of NCBA's issued share capital. Excess applications were scaled back to keep Nedbank's holding at the targeted 66 percent.

Accepting shareholders received 23.23 billion Kenyan shillings in cash. Nedbank also issued 43.63 million new shares as part of the consideration. The transaction makes NCBA a subsidiary of Nedbank Group.

Listing and governance remain in focus

NCBA remains listed on the Nairobi Securities Exchange, with approximately 34 percent of its issued shares held by public investors. Trading resumed on November 3 after a suspension that began on October 21 while the share register was reconciled and the transaction was implemented.

Michael Howard Davis, Nedbank Group's chief financial officer, and Anél Bosman, chief executive of Nedbank Corporate and Investment Banking, joined NCBA's board as non-executive directors with effect from November 3. NCBA also appointed Esther Wanjiku Kung'u as group company secretary.

Investor focus shifts to Nedbank ownership

The change in control gives Nedbank responsibility for NCBA's strategic direction, including expansion plans, earnings retention and dividend decisions. Nedbank's final cash and share totals are expected to provide the next detailed reference point for investors following completion of the settlement.