South Africa’s Nedbank Group has made an offer to acquire a 66% stake in Kenya’s NCBA Group in a cash-and-share transaction valued at 13.9 billion rand ($855.5 million), showing the lender’s ambition to expand its presence in East Africa.

NCBA is one of East Africa’s leading financial services groups, and, if approved, will become a subsidiary of its new South African parent while retaining its brand, local management team, and separate stock market listing.

Under the proposed deal, which is based on Nedbank’s share price of 250 rand, shareholders would receive 20% of the consideration in cash and the remaining 80% in newly issued Nedbank ordinary shares listed on the Johannesburg Stock Exchange.

The remaining 34% of NCBA’s shares would continue to trade on the Nairobi Securities Exchange. Nedbank Chief Executive Officer Jason Quinn described the transaction as a significant milestone in the bank’s strategy to deepen its footprint across southern and East Africa.

Nedbank said East Africa is strategically important, citing strong macroeconomic fundamentals and the region’s role as a trade corridor linking Africa to the Middle East, India, and Asia.

Headquartered in Nairobi, NCBA was created in 2019 through the merger of NIC Group and Commercial Bank of Africa. The group operates in Kenya, Uganda, Tanzania, and Rwanda, and offers digital banking services in Ghana and the Ivory Coast. It serves more than 60 million customers through a network of 122 branches.

Source: Africabusinessinsider