Nedbank of South Africa will pay $856 million to acquire the bulk of Kenya’s NCBA
South Africa’s Nedbank Group announced on Wednesday its offer to acquire a 66% stake in Kenya’s NCBA Group in a cash-and-stock transaction valued at 13.9 billion rand ($855.5 million), aligning with the lender’s goals to grow its presence in East Africa.
The transaction, reflecting Nedbank’s stock price of 250 rand per share, will be settled with 20% in cash and 80% through newly issued Nedbank ordinary shares listed on the Johannesburg Stock Exchange, according to a statement from the bank.
The remaining 34% of NCBA shares will continue to be publicly traded on the Nairobi Securities Exchange.
If finalized, NCBA, a prominent financial services group in East Africa, would operate as a subsidiary of Nedbank, while maintaining its brand, local leadership, and independent listing.
Nedbank Group Chief Executive Jason Quinn stated that the planned acquisition represents a significant advancement in Nedbank’s efforts to expand its presence in southern and East Africa. “By merging NCBA’s strong local presence with Nedbank’s capital base, expertise, and long-term dedication to Africa, we envision a robust platform for sustainable growth in the region,” Quinn remarked.
Nedbank considers East Africa to be of strategic significance, highlighting robust macroeconomic fundamentals, a substantial and expanding population, and the region’s function as a trade corridor connecting Africa with the Middle East, India, and Asia.
NCBA, based in Nairobi and established in 2019 through the merger of NIC Group and Commercial Bank of Africa, operates in Kenya, Uganda, Tanzania, and Rwanda, while also offering digital banking services in Ghana and Ivory Coast. It caters to over 60 million customers and operates 122 branches.
