How will this affect value of kcb, i have a material holding

what was the announcement? kcb now trading

KCB intends to acquire 100% of the ordinary shares with a par value of Ksh.5 of National Bank of Kenya.
The offer shall be a way of a share swap of 10 ordinary shares of NBK shares for every 1 ordinary share of KCB.

Top 10 NBK Shareholders as at 31 December 2017

National Social Security Fund 162,802,746 48.10%
2.The Permanent Secretary To The Treasury 76,230000 22.50%
3.Kenya Reinsurance Corporation Limited 4,840,000 1.40%
4.Best Investment Decisions Limited 2,350,271 0.70%
5.Co-op Bank Custody A/C 4003a 1,864,863 0.60%
6.Craysell Investments Limited 1,431,069 0.40%
7.NIC Custodial Services A/C 077 1,405,245 0.40%
8.Equity Nominee Ltd A/C00084 1,256,343 0.40%
9.NBK Client A/c 1 1,143,450 0.30%
10.Eng. Ephraim Mwangi Maina 105,003 0.30%
11.Others 84,371,010 24.90%

TOTAL 338,800,000

Figures to watch out for is the non performing loans and the costs.
Assuming a large part of the non performing loans are written off, KCB will only get about 90billion in extra assets vs customer deposits of 98 biliion.
Income side they are getting nothing.
How fast will they cut costs on the N.B.K side and at what cost is the question.
Share dilution isn't much, about 1% if you consider ordinary shares. How will prefence shares be handled?

Conversion of the NBK outstanding stock of preference shares 1,135,000,000 is proposed to be 1 for 1 ordinary shares as per the offer..

Hope KCB will undertake a massive restructuring at NBK. The board and management of the latter are rotten to the core.

Can you imagine NBK management leasing premises for a new branch, renovate, brand, install everything including computers, network and ATMs, then pays rent for a whole 3 years withoutbecause opening because they realised its not viable. Case in point - Nanyuki.

The par value of Treasury’s portion of the preference shares is Sh4.5 billion with NSSF’s claim at about Sh1.2 billion, adding up to a total of Sh5.7 billion.
Gok Owns 79% of the Preference shares and NSSF 21%

If KCB buys NBK for a song then KCB may benefit. KCB may have the resources, heft and experience to follow up on the NPLs. Didn't KCB also want a guarantee to keep the business that GoK gives NBK?

Yes, I agree about the short-term hit but the long-term benefits may outweigh the negatives.

So total NBK issued shares will be 1,443,000,000 (1,135,000,000 + 308,000,000) after preference shares conversion. This means KCB will issue 144,3000,000 shares to acquire the whole NBK. Given that KCB total issued shares is about 3 billion, this represents a dilution of about 4.8 percent.