National Bank has informed its shareholders that they have until the end of July to submit their offer acceptance forms for the proposed takeover by KCB bank. The takeover deal will be considered successful after NBK’s shareholders with a 75 per cent stake in the bank accept the offer.
KCB Group intends to acquire 1,473,781,200 ordinary shares of NBK in exchange for 147,378,120 KCB shares. After the acquisition, National Bank investors will hold a 4.59 per cent stake in KCB Group.
The transaction advisors for the project are Standard Investment Bank and Pacifis Advisory Limited while Oraro & Company Advocates and Miller & Company Advocates are the legal advisors.
According to the investment advisor SIB, National Bank’s fair value price is KSh6.10 per share. In contrast, KCB group’s offer price of about KSh3.80 per share is substantially below the stock’s fair value. The board of NBK recommends the offer to shareholders despite the undervaluation. In the circular to investors, the directors note, “….although NBK remains a strong bank, it requires more capital to meet the regulatory capital and grow its business, which capital can be provided by KCB.”
National Bank expects the purchase deal to be completed by 25th August if all goes per the plan. The transaction will need approval from the Capital Markets Authority, Nairobi Securities Exchange, Central Bank of Kenya, the Competition Authority and shareholders before it is finalized.
