The Lower Eastern Times Opening The Third Eye
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South African lender Nedbank Group has submitted a tender offer to purchase approximately 66 percent of NCBA Group’s ordinary shares, which would give Nedbank a controlling interest in the Kenyan financial services company if the deal goes through.
The remaining 34 percent of NCBA shares would continue to be traded on the Nairobi Securities Exchange (NSE).
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The proposed transaction values NCBA at 1.4 times its book value. Shareholders who accept the tender would receive 20 percent in cash and the remaining 80 percent in Nedbank shares listed on the Johannesburg Stock Exchange (JSE).
NCBA has a presence in Kenya, Uganda, Tanzania, Rwanda, Ivory Coast, and Ghana, with 122 branches serving over 60 million customers. Nedbank, headquartered in South Africa, is one of the continent’s largest financial institutions, with operations across Southern Africa and offices in London, Dubai, the Isle of Man, and Jersey.
“Nedbank is an ideal partner for our growth in East Africa. Their strong balance sheet will help us scale in current markets and explore opportunities in Ethiopia and DRC,” said NCBA Managing Director John Gachora.
The acquisition would allow NCBA to remain NSE-listed while retaining its brand, governance, operations, and management team.
“Kenya’s position as a regional financial hub, supported by robust institutions and a dynamic tech sector, makes it a natural anchor for Nedbank’s East African expansion, including Rwanda, Tanzania, and Uganda,” said Nedbank CEO Jason Quinn.
The deal is subject to regulatory approvals from relevant central banks and is expected to close within six to nine months.
