The National Bank of Kenya (NBK) has delisted from the Nairobi Securities Exchange (NSE) following a full acquisition by the Kenya Commercial Bank (KCB).
In a notice on Monday, NSE announced that the delisting of the lender will take effect on November 25, 2021, after approval by shareholders.
“Notice is hereby given on the de-listing of National Bank of Kenya Limited (NBK) from the Nairobi Securities Exchange (NSE) with effect from November 25, 2021. The de-listing follows the successful takeover of 100% shareholding of NBK by KCB Group Plc and NBK shareholders’ approval,” said NSE in a statement.
The de-listing is approved and issued by the Capital Markets Authority pursuant to Regulation 22(4)
C of the Capital Markets (Securities) (Public Offers, Listing & Disclosures) Regulations 2002.
NBK was initially fully owned by the government since its inception in 1968, but the government has shed its stake to 22.5 percent.
However, the lender fell into a financial crisis and was operating in the red until 2020, when KCB floated the takeover bid.
In the takeover transaction actualised through a share swap, those with shares in NBK swapped their shares with shares in KCB Group. 10 shares in NBK gave one 1 share in the new merger.
NBK’s management has been accused of mismanagement and collusion with defaulters to forfeit the loans, which had run down the bank.