South Africa’s (SA) Nedbank Group said this Wednesday it has offered to buy a 66% stake in Kenya’s NCBA Group in a cash-and-stock deal for R13.9 billion ($855.5 million) as part of the lender’s ambitions to expand in East Africa.
The transaction, based on Nedbank’s stock price of R250 ($15.38) per share, would be settled 20% in cash and 80% through new Nedbank ordinary shares listed on the Johannesburg Stock Exchange, the bank said in a statement.
The remaining 34% of NCBA shares would continue to trade publicly on the Nairobi Securities Exchange.
If completed, NCBA, one of East Africa’s largest financial services groups, would become a subsidiary of Nedbank, though it would retain its brand, local leadership and separate listing.
Nedbank Group Chief Executive Jason Quinn said the planned acquisition was a major step in Nedbank’s push to grow its southern and East African footprint.
“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.
–Reuters–
