Nedbank has received regulatory approval for its bid to acquire a majority stake in Kenya\u2019s NCBA Group, a deal valued at around R13.9 billion.<\/p>\n\n\n\n
NCBA is one of East Africa\u2019s largest financial services groups, and, if approved, will become a subsidiary of Nedbank.<\/p>\n\n\n\n
NCBA has 122 branches and serves over 60 million customers, making it the largest banking group in Africa by customer numbers.<\/p>\n\n\n\n
The deal would see Nedbank acquire around 66% of the group, with the remaning 34% of NCBA shares trading publicly on the Nairobi Securities Exchange (NSE). <\/p>\n\n\n\n
The total purchase consideration for the deal stands at around R13.9 billion, which is based on the Nedbank issue price of R250.00 per share.<\/p>\n\n\n\n
The deal will be structured as a 20% cash portion and 80% new Nedbank ordinary shares listed on the JSE. <\/p>\n\n\n\n
“Nedbank has a strategic objective to grow and diversify outside of its core Southern Africa market, and we identified East Africa as a key growth region,” said Nedbank CEO Jason Quinn when the deal was announced. <\/p>\n\n\n\n
“We are therefore excited to partner with a strong and leading financial services firm such as NCBA to deliver on our growth ambitions.” <\/p>\n\n\n\n
Nedbank said that the deal was conditional upon obtaining an exemption from the Kenyan Capital Markets Authority (CMA). <\/p>\n\n\n\n
The exemption would apply to the requirement for Nedbank to extend a mandatory takeover offer for 100% of the NCBA Shares under Kenya’s Capital Markets Regulations. <\/p>\n\n\n\n
Nedbank needed to acquire the exemption by 31 May 2026. <\/p>\n\n\n\n
Failing which, this condition of the exemption would be waived by Nedbank, and the offer would convert to an alternative offer for 100% of all NCBA Shares. <\/p>\n\n\n\n
Nedbank has now advised shareholders that the CMA granted the exemption, thereby fulfilling the deal condition and allowing it to acquire just 66%. <\/p>\n\n\n\n
The offer is still subject to the remaining conditions of the waiver, but many NCBA shareholders have already agreed to the deal. <\/p>\n\n\n\n
Nedbank has now obtained Irrevocable Undertakings from certain NCBA shareholders representing approximately 77.54% of the total issued NCBA shares to accept the offer. <\/p>\n","protected":false},"excerpt":{"rendered":"
Nedbank has received a regulatory win in its bid to acquire a majority stake in Kenya’s BCAA.<\/p>\n","protected":false},"author":95,"featured_media":733033,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[961],"tags":[24825,1799],"class_list":["post-851799","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","tag-bcaa","tag-nedbank"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/851799","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=851799"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/851799\/revisions"}],"predecessor-version":[{"id":851810,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/851799\/revisions\/851810"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/733033"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=851799"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=851799"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=851799"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}