KCB Group #ticker:KCB shareholders on Thursday approved the acquisition of National Bank of Kenya Limited (NBK) #ticker:NBK through a share swap.
In the deal, KCB will acquire 100 percent of the issued ordinary shares of NBK.
The approval came after KCB Group made an offer to NBK on April 18, for the acquisition of 100 percent of the shares of NBK through a share swap of 10 ordinary shares of NBK for every one ordinary share of KCB. The transaction is subject to regulatory and NBK shareholders’ approvals.
The acquisition is part of KCB’s ongoing strategy to explore opportunities for new growth while investing in and maximising returns from existing businesses.
“For us, the acquisition is an opportunity to strengthen the deposit base and lending capacity, increase cost efficiencies due to economies of scale and boost transactional revenue through leveraging of technology,” said KCB Group Chairman Andrew Wambari Kairu.
“This is an attractive, commercially viable proposition that provides the scale needed to compete and win in the rapidly evolving world of financial service.”
During the AGM held in Nairobi, shareholders approved the final dividend of Sh 2.50 per share as recommended by the board. This brings to Sh3.50 the total dividend per share and Sh 10.7 billion the total dividend for the year. The dividend will be paid on or before July 30 to shareholders on the register by close of business on April 29.
“We delivered on our promises for 2018 on the back of a definite lending strategy and an aggressive digital banking proposition,” said Mr Kairu.
The Kenya business played an anchor role, contributing 93 percent of the group’s profit after tax of Sh22.4 billion, a growth of 17 percent. The international businesses collectively grew by 64 percent and together with KCB Capital and KCB Insurance Agency are targeted to contribute at least 20 percent of the Group’s profit by 2020.
“Our focus is to proactively support our customers’ growth, enabling businesses to thrive and economies across the East African region to prosper, said said KCB Group Chief Executive Officer and Managing Director Joshua Oigara.