South Africa’s Nedbank Group has completed its purchase of a 66 per cent controlling stake in NCBA Group PLC, making the Kenyan lender a Nedbank subsidiary and giving the South African bank a foothold in East Africa.
NCBA announced the completion on Monday, saying all required regulatory approvals had been received. The bank will remain listed on the Nairobi Securities Exchange, with the remaining 34 per cent of shares held by the public.
The offer drew heavy demand. When it closed on July 10, shareholders had tendered 1,316,357,895 shares, or 79.90 per cent of the issued shares, well above the 66 per cent Nedbank wanted. Excess applications were scaled back pro rata to bring Nedbank to its target stake.
Trading suspension and settlement
NCBA shares will be suspended from trading from close of business on October 21 until close of business on Monday, November 2, to allow the share register to be reconciled. The shares will move to Nedbank through a block trade on the NSE’s Block Trade Board on Tuesday, November 3, and settlement and cash payments to NCBA shareholders will begin the same day.
Business as usual, say both banks
NCBA said customers and staff should expect no immediate changes. The bank will keep its brand, local leadership, Nairobi headquarters and customer-facing operating model, and its products, branches and digital channels will stay as they are. It added that the tie-up could bring broader capabilities and stronger cross-border services through Nedbank.
NCBA operates in Kenya, Uganda, Tanzania, Rwanda, Ivory Coast and Ghana. Nedbank is listed on the Johannesburg and Namibia stock exchanges and has operations across Southern Africa, including Namibia, Zimbabwe, Mozambique, Lesotho and Eswatini, plus offshore centres in London, Dubai, the Isle of Man and Jersey.
NCBA Group Managing Director and CEO John Gachora called it “a proud moment” for the bank, saying that with Nedbank’s backing NCBA is positioned to pursue opportunities across the region and bring more sophisticated products to market. “The name is the same, the people are the same,” he said, “but the ambition and capabilities are tremendously magnified.”
Nedbank Group CEO Jason Quinn said the deal establishes a significant presence for the bank in East Africa and marks a decisive step in its African growth strategy.