Parliamentarians have stopped KCB Group from acquiring the struggling National Bank. The lawmakers say that KCB’s offer significantly undervalues the state-owned bank.
“The offer given by KCB does not reflect the value of NBK,” stated the Chairman of the Finance and National Planning Committee Joseph Limo, as reported by Bloomberg.
KCB offered to acquire National Bank of Kenya through a share swap in which NBK investors would exchange 10 shares for every one share of KCB. The deal valued NBK at KSh6 billion. Some investors and lawmakers opposed the deal arguing that it undervalues National Bank.