South Africa’s Nedbank Group Limited has completed its strategic investment in NCBA Group PLC, acquiring a 66 per cent controlling stake in the East African lender.
According to Nedbank, the move reinforces its confidence in East Africa’s financial services sector and is expected to unlock new opportunities for NCBA’s customers, employees and shareholders.
As Jimmy Mbogoh now reports, the transaction’s completion follows the receipt of the required regulatory approvals.
The completion of the transaction makes NCBA Group an East African subsidiary of Nedbank. However, despite the change in shareholding, the Kenyan lender will remain listed on the Nairobi Securities Exchange, with the remaining 34 per cent of its issued shares held by the public.
At the time of the transaction’s closure, NCBA shareholders had tendered a total of 1.32 billion shares, representing 79.90 per cent of the issued shares, exceeding the 66 per cent stake Nedbank had set out to acquire.
Nedbank has reiterated that NCBA Group will retain its brand, local leadership, Nairobi headquarters and customer-facing operating model.
