The Kenya Commercial Bank Group (KCB Group) has alerted investors and shareholders regarding the sale of its subsidiary, National Bank of Kenya (NBK). In a cautionary announcement dated March 20, 2024, the bank disclosed its intention to fully divest NBK to Nigerian Access Bank Plc.
KCB emphasized that the finalization of the proposed deal is contingent upon meeting standard conditions typical for transactions of this nature.
These conditions encompass obtaining regulatory approvals from entities such as the Central Bank of Kenya (CBK), the Central Bank of Nigeria, and the COMESA Competition Commission.
Additionally, non-compulsory approval from the Capital Markets Authority of Kenya (CMA) and notifications to other pertinent regulators are among the specified conditions.
Following completion, National Bank of Kenya will operate as a subsidiary of Access Bank of Nigeria. Until the transaction concludes, KCB shareholders and other investors are urged to exercise caution when trading its shares across various stock markets.
Previously under state control, NBK is a medium-sized financial institution that KCB acquired through a rescue arrangement facilitated by the CBK in 2019.
Following the acquisition, KCB, the country’s second-largest lender, has faced challenges in addressing various issues inherited from NBK, such as non-performing loans and substantial capital limitations.
The decline in performance has been attributed to several factors, including a loss of KES 3.8 billion incurred by National Bank, the sole non-performing subsidiary within the banking group.
The company clarified that the announcement regarding the sale of its National Bank subsidiary is solely for informational purposes and should not be construed as a public offering.
KCB emphasized that the announcement has been issued in compliance with the approval of the Capital Markets Authority (CMA) under the Capital Markets (Securities) (Public Offers, Listing and Disclosures) Regulations 2023.
KCB further stated that the CMA does not assume responsibility for the accuracy of the statements in the announcement as a matter of policy.
KCB Group Plc operates as a non-operating holding company, providing corporate, investment, and retail banking services through its subsidiaries.
Access Bank, on the other hand, is a publicly traded company incorporated in Nigeria and operates in Kenya through its subsidiary, Access Bank Kenya Plc, formerly known as Transnational Bank Kenya Plc.
