NAIROBI, Kenya — Nedbank Group Ltd. has submitted a 13.9 billion rand ($855.5 million) offer to acquire a 66% controlling stake in Kenya’s NCBA Group PLC, marking a major expansion for the South African lender into the East African market.
The proposal, announced Wednesday, is structured as a tender offer to NCBA shareholders. Under the terms of the deal, participating shareholders will receive 20% of the payment in cash and the remaining 80% in newly issued Nedbank shares listed on the Johannesburg Stock Exchange.
If successful, the transaction will turn NCBA into a subsidiary of Nedbank. However, the bank will retain its brand, its local management team and its listing on the Nairobi Securities Exchange, where the remaining 34% of its shares will continue to trade.
Nedbank Chief Executive Jason Quinn said the move is a milestone in the bank’s strategy to grow its footprint beyond Southern Africa.
By combining NCBA’s substantial local presence and Nedbank’s capital base, expertise and enduring commitment to Africa, we see a compelling platform for sustainable growth in the region, Quinn said.
NCBA, which formed from a 2019 merger between NIC Group and Commercial Bank of Africa, serves more than 60 million customers across Kenya, Uganda, Tanzania, Rwanda, Ghana and Ivory Coast. The bank is currently Kenya’s third-largest lender by customer numbers.
John Gachora, the NCBA Group managing director, said the deal would allow the lender to scale in existing markets and explore new opportunities in Ethiopia and the Democratic Republic of Congo.
The offer values NCBA at 1.4 times its book value. While the deal has been submitted to the board and relevant authorities, it remains subject to regulatory approvals from the central banks in the jurisdictions where NCBA operates.
The transaction is expected to be completed within the next six to nine months.
