CMA cautions investors over KCB, National Bank stock as acquisition talk heightens

CMA cautions investors over KCB, National Bank stock as acquisition talk heightens
National Bank CEO Wilfred Musau at a past event with ICPAK


The KCB Group is yet to notify the market regulator over its intention to acquire a majority stake in National Bank of Kenya.

This comes two weeks after revelations of the impending buyout were revealed with only the National Treasury being kept in the loop.

However the Capital Markets Authority (CMA) says it has not yet been made aware of any deal, with the KCB Group yet to make any regulatory filing regarding the deal.

Both KCB and National Bank are listed on the Nairobi Securities Exchange (NSE).

“We wish to clarify that no regulatory filings have been made to the Authority by KCB Group regarding this matter and no confirmation of the existence of such a transaction has been received,” CMA chief executive officer Paul Muthaura said in a statement.

Mr Muthaura further urged investors to trade the two banks shares with caution pending clarity on the intended buyout.

Both banks have seen their share price rise in recent weeks.

By 11:30am KCB share was up 3.47 percent trading at Sh37.25 while National Bank’s share was trading at Sh11

The KCB Group plans to acquire 70 percent of National Bank shares in a share swap deal.

This will see the bank take up shares currently owned by the government through the Treasury and the National Social Security Fund in exchange for new shares at KCB.

Listed companies are expected to alert shareholders of transactions that are likely to impact the trading of its stock.

This was seen earlier in the month when Kenya Airways issued a cautionary statement to shareholders after it emerged that the government planned to underwrite its debt totaling Sh77 billion.

The Kenyan banking industry has been undergoing a consolidation phase with both the Central Bank of Kenya (CBK) and the treasury rooting for stronger banks.

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