Government stake to facilitate delisting of NBK ahead of KCB buyout

0
577
NBK
PHOTO/COURTESY

The government’s 93.23 per cent stake in the National Bank of Kenya (NBK) will make it possible for the lender to delist from the Nairobi Securities Exchange without seeking approval from shareholders ahead of its buyout by KCB Group.

According to a news report by the Business Daily, takeovers of publicly traded firms can only go through if shareholders approve of the transaction by voting on whether or not the firms should be delisted ahead of their procurement but because the government supports the buyout and owns a massive share in the lender through the Treasury and National Social Security Fund, the lenders have opted to skip this process of the buyout.

“One of these conditions-of the offer-is that the NBK shareholders should approve the de-listing of the lender from the NSE. This would require a delisting extraordinary general meeting (EGM) and because none is planned, KCB will be required to waive this condition,” NBK said in a circular to shareholders dated July 12.

The local daily similarly reports that the aforementioned will also make it possible for KCB to stoutly purchase shares held by any National Bank shareholders who may be opposed to the transaction.

 “If the offer is accepted by NBK shareholders holding 90 percent of the offer shares, KCB intends to apply the provisions of the Take-Over Regulations and Part XXIV, Division 4 of the Companies Act, 2015 to compulsorily acquire the remaining shares of NBK,” KCB says in its takeover document according to the Business Daily.

The buyout, which was set at one KCB share for 10 NBK shares, began on Wednesday last week and it will run till the end of August while listing of the additional KCB shares that will be allocated to current National Bank owners will be conducted on September 16.

ALSO READ: Oigara to chair team overseeing KCB-NBK buyout

LEAVE A REPLY

Please enter your comment!
Please enter your name here