KCB GROUP LISTS NEW SHARES ON THE NAIROBI SECURITIES EXCHANGE IN NATIONAL BANK OF KENYA TAKE-OVER

KCB GROUP LISTS NEW SHARES ON THE NAIROBI SECURITIES EXCHANGE IN NATIONAL BANK OF KENYA TAKE-OVER

By Irene Wambui Odhiambo

KCB Group Plc has listed an additional 142,979,717shares at the Nairobi Securities Exchange (NSE) following the successful acquisition of the National Bank of Kenya (NBK).

Effectively, NBK shareholders who swapped their shares for those of KCB will now be able to freely trade the new stocks at the bourse.

KCB got consent to acquire NBK from shareholders holding 297,130,033 issued ordinary shares out of 338,781,200 issued ordinary shares, representing 87.7% by the offer closure date on August 30, 2019.

This brings to the total 3,209,043,204 the number of shares the biggest bank by asset base in Eastern Africa has floated at the NSE.

“The listing will enhance the vibrancy of the capital market and will be instrumental in fueling continued business growth and the execution of the

Bank’s expansion plans.

It provides more shares and therefore liquidity on the counter, allowing more investors to be part of the Bank,” said KCB Group Chairman Andrew Wambari Kairu.

The takeover is expected to give NBK a new lifeline as a business and fits well within KCB expansion strategy.

“We see this friendly takeover as an enrichment of the banking heritage that we have created in the country in our more than 120 years of existence.

It is anticipated to deliver immense value to our shareholders, customers, staff and all other stakeholders through creation of meaningful synergies from the business lines and group operating structure,” he said during the bell ringing ceremony to commence the listing of the new shares at the NSE trading floor on Friday.

In his remarks, NSE Chairman Mr. Samuel Kimani said: “We are delighted that the acquisition has been successfully concluded, creating additional value to the KCB shareholders and boosting overall market participation.

We continue to encourage domestic led economic growth and applaud KCB on this historic transaction.”

KCB has started the process of integrating NBK into KCB, an exercise that is expected to be completed within the next 24 months, focusing on systems, processes, people and institutional governance.

It is anticipated that as a combined institution, this gives KCB a stronger edge to play a bigger role in driving the financial inclusion and economic empowerment agenda in the East African region while simultaneously building a robust and financially sustainable organisation.

The conversion of the non-cumulative preference shares in the share capital of NBK is in progress and the swap of the said shares will occur.

On completion of these processes, KCB will hold 1,432,130,033 ordinary shares comprising 97.17% of the total issued share capital of NBK and shall apply the provisions of the Capital Markets (Take-overs and Mergers) Regulations, 2002 and Part XXIV, Division 4 of the Companies Act to compulsorily acquire the remaining 41,651,167 issued ordinary shares of NBK.

Requisite notices in this regard will be sent to all concerned shareholders.

The bell-ringing event was witnessed by KCB Group CEO and MD Joshua Oigara, NSE CEO Geoffrey Odundo, Capital Markets Authority CEO Paul Muthaura, Central Depository & Settlement Corporation Limited Acting.

CEO Hilda Njeru, and Competition Authority of Kenya CEO Francis Wang’ombe.

About KCB Group

KCB Group Plc is East Africa’s largest commercial Bank that was established in 1896 in Kenya.

Over the years, the Bank has grown and spread its wings into Tanzania, South Sudan, Uganda, Rwanda, Burundi and Ethiopia (Rep).

Today KCB Group Plc has the largest branch network in the Region of 258 branches, 962 ATMs and over 16,600 merchants and agents offering banking services on a 24/7 basis in East Africa. This is complemented by mobile banking and internet banking services with a 24hour contact center services for our customers to get in touch with the Bank.

The Bank has a wide network of correspondent relationships totaling over 200 banks across the globe and our customers are assured of a seamless facilitation of their international trade requirements wherever they are.

In the first half of the year, KCB Group received several local and international accolades, cementing its market leadership position.

The lender was awarded for being innovative and adopting sustainable finance in its daily operations. These awards include: African Banker Awards, Best Regional Bank in East

Africa, four Sustainable Finance Catalyst Awards.

Other awards won were the Banker Africa Awards, Best Retail Bank in East Africa Award and East African Business Council (EABC) Business Excellence Awards second runner up in Green Economy and Best East African Company.

About Nairobi Securities Exchange PLc

The Nairobi Securities Exchange (NSE) is the principal securities exchange of Kenya.

Besides equity securities, the NSE offers a platform for the issuance and trading of debt securities.

The NSE is a member of the African Securities Exchanges Association (ASEA) and the East African Securities Exchanges Association (EASEA).

It is a full member of the Association of Futures Markets (AFM) and an affiliate member of the World Federation of Exchanges (WFE), and a partner Exchange in the United Nations Sustainable Stock Exchanges Initiatives.