KCB Group #ticker:KCB and National Bank of Kenya (NBK) #ticker:NBK have appointed a transition team to oversee acquisition of 100 per cent ordinary shares of the cash-strapped lender as they race to meet a September 2019 deadline for conclusion of the buyout.
The team comprises staff from both banks and will be led by KCB chief executive officer Joshua Oigara. Its main task will be to mitigate risks and make the necessary preparations to enable a smooth transition.
This comes as KCB says it has served NBK with an offer document following approval from the markets regulator.
“KCB has received regulatory approval from the Capital Markets Authority (CMA) to serve NBK with the Offer Document pursuant to the Capital Markets (Take-overs and Mergers) Regulations, 2002. KCB this week served NBK with the Offer Document, with a response expected within 14 days. The process is expected to be completed by September 2019,” KCB said in a statement yesterday.
KCB and NBK’s shareholders recently approved the deal to swap of 10 ordinary shares of NBK for every 1 ordinary share of KCB at their respective annual general meetings.
The transaction will have to be approved by the CMA, the Competition Authority of Kenya and the Central Bank of Kenya to be complete.
Mr Oigara previously said that the transaction fits within KCB’s expansion strategy and will give the lender a stronger edge to play a bigger role in driving financial inclusion in the region.