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KCB and NBK material announcement
Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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VituVingiSana wrote:HaMaina wrote:KaunganaDoDo wrote:Ericsson wrote: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. Is a good deal for both KCB and NBK....Though its the NBK shareholders to laugh all the way to the bank...KCB will have to recapitalize by way off injecting new Capital into NBK...Its a winner takes all. With new capital, and increased deposits through GOVERNMENT SINGLE TREASURY ACCOUNT, NBK will lend and lend and lend .... It would have been nice if Safaricom had taken the initiative and purchased NBK, that would definitely have given Equity and Equitel a run for their money. Why buy NBK with its myriad problems that would be expensive to solve? If Safaricom wants to buy a bank, it should go for one that is relatively clean. Hit the ground running. Let them buy a telco if looking for an acquisition Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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The monkey being bought is rejoicing upwards,the elephant buying is sinking downwards. "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Member Joined: 8/6/2018 Posts: 299
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mlennyma wrote:The monkey being bought is rejoicing upwards,the elephant buying is sinking downwards. Monkeys are lighter than elephants.
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Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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In my early days I rejoiced when markets rose. Then I read Ben Grahams The Intelligent Investor & Chapter 8 dealing with how investors should view fluctuations in stock prices. Since then, low prices became my friend. Picking that book was the luckiest moment in my life - Warren Buffett Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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KaunganaDoDo wrote:mlennyma wrote:The monkey being bought is rejoicing upwards,the elephant buying is sinking downwards. Monkeys are lighter than elephants. Elephant up monkey down today Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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  Pesa Nane plans to be shilingi when he grows up.
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Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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Acquisition is expected to close by end of July Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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NBK to operate for one year after merger with KCBNational Bank of Kenya will be operational for a year if the merger deal with Kenya Commercial Bank goes through, the latter's chief executive Josua Oigara said late on Friday. In April, KCB Group Plc declared its intention acquire 100 per cent stake of National Bank of Kenya through a share swap deal, comprising of 10 ordinary shares of NBK for every 1 ordinary share of KCB. Oigara welcomed the ongoing consolidations in the Kenyan banking sector. “I am a big fan for the ongoing mergers and acquisitions because it is better for banks to operate in large entities in assets value than small ones,” Oigara said. KCB is also planning to open a representative office in China, to take advantage of growing trade links between East Africa and China, he said. The requirement to establish such entity is about one trillion in asset base.The entry may come after consolidation with NBK after which the bank currently with Sh714.3 billion in total assets as per its 2018 financial results will have the muscle for entry. “It is very expensive to open a bank in such country but we are still geared to have a representative office there,” he said. The bank’s offices will facilitate deals in syndicated lending, specialised, project and trade finance. While there are no Kenyan banks' representative offices in other countries, there are at least eight representative offices of foreign banks in the country. He said KCB plans to buy a bank in Rwanda and one in the Democratic Republic of the Congo (DRC). Oigara did not reveal the identity of the two banks the lender is considering acquiring or the timeframe. Kenyan banks have announced several deals since the government capped commercial lending rates in 2016, crimping their profit margins and forcing them to look for survival strategies, including consolidation. https://www.the-star.co....r-after-merger-with-kcb/Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 6/23/2009 Posts: 13,516 Location: nairobi
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The Government has pushed through its agenda in the conversion of preference shares held in National Bank of Kenya (NBK), dealing workers' pension savings at the public pension fund a huge blow. Implications of the agreement will be significant, especially at KCB, which is in the process of finalizing the complete takeover of NBK. Individual and institutional investors will be the biggest losers in the agreed structure with their shareholding diminishing from 29.5 per cent to about 6.7 per cent The Government has leapfrogged the National Social Security Fund (NSSF) as the biggest shareholder in NBK, thanks to the hitherto elusive agreement. Jointly, the two entities control nearly 93.2 per cent of NBK, pending shareholder approval on the treatment of the 1.2 billion preferential shares. In the proposed formula, the preference shares will be converted one-for-one with ordinary stock, which constitutes the actual ownership. Holders of preferential shares earn a predetermined dividend over time, but do not have voting rights, unlike for ordinary shares. NBK Company Secretary Habil Waswani has announced that the retirement of the preference shares will be an item of discussion in the upcoming annual general meeting slated for June 14. He added that the proposals would be subject to regulatory approvals of the takeover of the bank by KCB - the country's biggest lender.
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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obiero wrote:The Government has pushed through its agenda in the conversion of preference shares held in National Bank of Kenya (NBK), dealing workers' pension savings at the public pension fund a huge blow. Implications of the agreement will be significant, especially at KCB, which is in the process of finalizing the complete takeover of NBK. Individual and institutional investors will be the biggest losers in the agreed structure with their shareholding diminishing from 29.5 per cent to about 6.7 per cent The Government has leapfrogged the National Social Security Fund (NSSF) as the biggest shareholder in NBK, thanks to the hitherto elusive agreement. Jointly, the two entities control nearly 93.2 per cent of NBK, pending shareholder approval on the treatment of the 1.2 billion preferential shares. In the proposed formula, the preference shares will be converted one-for-one with ordinary stock, which constitutes the actual ownership. Holders of preferential shares earn a predetermined dividend over time, but do not have voting rights, unlike for ordinary shares. NBK Company Secretary Habil Waswani has announced that the retirement of the preference shares will be an item of discussion in the upcoming annual general meeting slated for June 14. He added that the proposals would be subject to regulatory approvals of the takeover of the bank by KCB - the country's biggest lender. NBK shareholders have lucked out. If CBK was allowed to apply the same regulations/guidelines to NBK like it did to Imperial or Chase then NBK would have closed down years ago. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 6/23/2009 Posts: 13,516 Location: nairobi
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VituVingiSana wrote:obiero wrote:The Government has pushed through its agenda in the conversion of preference shares held in National Bank of Kenya (NBK), dealing workers' pension savings at the public pension fund a huge blow. Implications of the agreement will be significant, especially at KCB, which is in the process of finalizing the complete takeover of NBK. Individual and institutional investors will be the biggest losers in the agreed structure with their shareholding diminishing from 29.5 per cent to about 6.7 per cent The Government has leapfrogged the National Social Security Fund (NSSF) as the biggest shareholder in NBK, thanks to the hitherto elusive agreement. Jointly, the two entities control nearly 93.2 per cent of NBK, pending shareholder approval on the treatment of the 1.2 billion preferential shares. In the proposed formula, the preference shares will be converted one-for-one with ordinary stock, which constitutes the actual ownership. Holders of preferential shares earn a predetermined dividend over time, but do not have voting rights, unlike for ordinary shares. NBK Company Secretary Habil Waswani has announced that the retirement of the preference shares will be an item of discussion in the upcoming annual general meeting slated for June 14. He added that the proposals would be subject to regulatory approvals of the takeover of the bank by KCB - the country's biggest lender. NBK shareholders have lucked out. If CBK was allowed to apply the same regulations/guidelines to NBK like it did to Imperial or Chase then NBK would have closed down years ago. True, in government safety is found.. Diluted or not.. Atleast it won't be put under an administrator
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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obiero wrote:VituVingiSana wrote:obiero wrote:The Government has pushed through its agenda in the conversion of preference shares held in National Bank of Kenya (NBK), dealing workers' pension savings at the public pension fund a huge blow. Implications of the agreement will be significant, especially at KCB, which is in the process of finalizing the complete takeover of NBK. Individual and institutional investors will be the biggest losers in the agreed structure with their shareholding diminishing from 29.5 per cent to about 6.7 per cent The Government has leapfrogged the National Social Security Fund (NSSF) as the biggest shareholder in NBK, thanks to the hitherto elusive agreement. Jointly, the two entities control nearly 93.2 per cent of NBK, pending shareholder approval on the treatment of the 1.2 billion preferential shares. In the proposed formula, the preference shares will be converted one-for-one with ordinary stock, which constitutes the actual ownership. Holders of preferential shares earn a predetermined dividend over time, but do not have voting rights, unlike for ordinary shares. NBK Company Secretary Habil Waswani has announced that the retirement of the preference shares will be an item of discussion in the upcoming annual general meeting slated for June 14. He added that the proposals would be subject to regulatory approvals of the takeover of the bank by KCB - the country's biggest lender. NBK shareholders have lucked out. If CBK was allowed to apply the same regulations/guidelines to NBK like it did to Imperial or Chase then NBK would have closed down years ago. True, in government safety is found.. Diluted or not.. Atleast it won't be put under an administrator NSSF also gave a consent to the conversion of the preference shares to ordinary shares for it to sail through.Previously they were the stumbling block. Other ordinary shares wajipange Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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Ericsson wrote:obiero wrote:VituVingiSana wrote:obiero wrote:The Government has pushed through its agenda in the conversion of preference shares held in National Bank of Kenya (NBK), dealing workers' pension savings at the public pension fund a huge blow. Implications of the agreement will be significant, especially at KCB, which is in the process of finalizing the complete takeover of NBK. Individual and institutional investors will be the biggest losers in the agreed structure with their shareholding diminishing from 29.5 per cent to about 6.7 per cent The Government has leapfrogged the National Social Security Fund (NSSF) as the biggest shareholder in NBK, thanks to the hitherto elusive agreement. Jointly, the two entities control nearly 93.2 per cent of NBK, pending shareholder approval on the treatment of the 1.2 billion preferential shares. In the proposed formula, the preference shares will be converted one-for-one with ordinary stock, which constitutes the actual ownership. Holders of preferential shares earn a predetermined dividend over time, but do not have voting rights, unlike for ordinary shares. NBK Company Secretary Habil Waswani has announced that the retirement of the preference shares will be an item of discussion in the upcoming annual general meeting slated for June 14. He added that the proposals would be subject to regulatory approvals of the takeover of the bank by KCB - the country's biggest lender. NBK shareholders have lucked out. If CBK was allowed to apply the same regulations/guidelines to NBK like it did to Imperial or Chase then NBK would have closed down years ago. True, in government safety is found.. Diluted or not.. Atleast it won't be put under an administrator NSSF also gave a consent to the conversion of the preference shares to ordinary shares for it to sail through.Previously they were the stumbling block. Other ordinary shares wajipange That is serious dilution for minority shareholders. Saad. In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Elder Joined: 6/23/2009 Posts: 13,516 Location: nairobi
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Angelica _ann wrote:Ericsson wrote:obiero wrote:VituVingiSana wrote:obiero wrote:The Government has pushed through its agenda in the conversion of preference shares held in National Bank of Kenya (NBK), dealing workers' pension savings at the public pension fund a huge blow. Implications of the agreement will be significant, especially at KCB, which is in the process of finalizing the complete takeover of NBK. Individual and institutional investors will be the biggest losers in the agreed structure with their shareholding diminishing from 29.5 per cent to about 6.7 per cent The Government has leapfrogged the National Social Security Fund (NSSF) as the biggest shareholder in NBK, thanks to the hitherto elusive agreement. Jointly, the two entities control nearly 93.2 per cent of NBK, pending shareholder approval on the treatment of the 1.2 billion preferential shares. In the proposed formula, the preference shares will be converted one-for-one with ordinary stock, which constitutes the actual ownership. Holders of preferential shares earn a predetermined dividend over time, but do not have voting rights, unlike for ordinary shares. NBK Company Secretary Habil Waswani has announced that the retirement of the preference shares will be an item of discussion in the upcoming annual general meeting slated for June 14. He added that the proposals would be subject to regulatory approvals of the takeover of the bank by KCB - the country's biggest lender. NBK shareholders have lucked out. If CBK was allowed to apply the same regulations/guidelines to NBK like it did to Imperial or Chase then NBK would have closed down years ago. True, in government safety is found.. Diluted or not.. Atleast it won't be put under an administrator NSSF also gave a consent to the conversion of the preference shares to ordinary shares for it to sail through.Previously they were the stumbling block. Other ordinary shares wajipange That is serious dilution for minority shareholders. Saad. Massive dilution without an Open Offer backstop.. GoK holding in simba goes up from current 17% to over 25% and then some lame folk will ask me to sell KCB, and forget GoK is also big in Safaricom, KENRE, KQ..
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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obiero wrote:Angelica _ann wrote:Ericsson wrote:obiero wrote:VituVingiSana wrote:obiero wrote:The Government has pushed through its agenda in the conversion of preference shares held in National Bank of Kenya (NBK), dealing workers' pension savings at the public pension fund a huge blow. Implications of the agreement will be significant, especially at KCB, which is in the process of finalizing the complete takeover of NBK. Individual and institutional investors will be the biggest losers in the agreed structure with their shareholding diminishing from 29.5 per cent to about 6.7 per cent The Government has leapfrogged the National Social Security Fund (NSSF) as the biggest shareholder in NBK, thanks to the hitherto elusive agreement. Jointly, the two entities control nearly 93.2 per cent of NBK, pending shareholder approval on the treatment of the 1.2 billion preferential shares. In the proposed formula, the preference shares will be converted one-for-one with ordinary stock, which constitutes the actual ownership. Holders of preferential shares earn a predetermined dividend over time, but do not have voting rights, unlike for ordinary shares. NBK Company Secretary Habil Waswani has announced that the retirement of the preference shares will be an item of discussion in the upcoming annual general meeting slated for June 14. He added that the proposals would be subject to regulatory approvals of the takeover of the bank by KCB - the country's biggest lender. NBK shareholders have lucked out. If CBK was allowed to apply the same regulations/guidelines to NBK like it did to Imperial or Chase then NBK would have closed down years ago. True, in government safety is found.. Diluted or not.. Atleast it won't be put under an administrator NSSF also gave a consent to the conversion of the preference shares to ordinary shares for it to sail through.Previously they were the stumbling block. Other ordinary shares wajipange That is serious dilution for minority shareholders. Saad. Massive dilution without an Open Offer backstop.. GoK holding in simba goes up from current 17% to over 25% and then some lame folk will ask me to sell KCB, and forget GoK is also big in Safaricom, KENRE, KQ.. GoK shareholding will rise to 20% from 17% Nssf shareholding will rise from 6.12% to 7.3% Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 6/23/2009 Posts: 13,516 Location: nairobi
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Ericsson wrote:obiero wrote:Angelica _ann wrote:Ericsson wrote:obiero wrote:VituVingiSana wrote:obiero wrote:The Government has pushed through its agenda in the conversion of preference shares held in National Bank of Kenya (NBK), dealing workers' pension savings at the public pension fund a huge blow. Implications of the agreement will be significant, especially at KCB, which is in the process of finalizing the complete takeover of NBK. Individual and institutional investors will be the biggest losers in the agreed structure with their shareholding diminishing from 29.5 per cent to about 6.7 per cent The Government has leapfrogged the National Social Security Fund (NSSF) as the biggest shareholder in NBK, thanks to the hitherto elusive agreement. Jointly, the two entities control nearly 93.2 per cent of NBK, pending shareholder approval on the treatment of the 1.2 billion preferential shares. In the proposed formula, the preference shares will be converted one-for-one with ordinary stock, which constitutes the actual ownership. Holders of preferential shares earn a predetermined dividend over time, but do not have voting rights, unlike for ordinary shares. NBK Company Secretary Habil Waswani has announced that the retirement of the preference shares will be an item of discussion in the upcoming annual general meeting slated for June 14. He added that the proposals would be subject to regulatory approvals of the takeover of the bank by KCB - the country's biggest lender. NBK shareholders have lucked out. If CBK was allowed to apply the same regulations/guidelines to NBK like it did to Imperial or Chase then NBK would have closed down years ago. True, in government safety is found.. Diluted or not.. Atleast it won't be put under an administrator NSSF also gave a consent to the conversion of the preference shares to ordinary shares for it to sail through.Previously they were the stumbling block. Other ordinary shares wajipange That is serious dilution for minority shareholders. Saad. Massive dilution without an Open Offer backstop.. GoK holding in simba goes up from current 17% to over 25% and then some lame folk will ask me to sell KCB, and forget GoK is also big in Safaricom, KENRE, KQ.. GoK shareholding will rise to 20% from 17% Nssf shareholding will rise from 6.12% to 7.3% Have you factored in the preference shares?
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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@obiero That has been factored. Refer to the offer document. Post conversion of preference shares to ordinary shares, shareholders of NBK will be entitled to a stake of 4.8% of KCB Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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Ericsson wrote:@obiero
That has been factored. Refer to the offer document.
Post conversion of preference shares to ordinary shares, shareholders of NBK will be entitled to a stake of 4.8% of KCB I am going to give up on trying to explain stuff over and over again. Watu wapambane na hali yake. Let him buy more KQ shares.  Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 6/23/2009 Posts: 13,516 Location: nairobi
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Ericsson wrote:@obiero
That has been factored. Refer to the offer document.
Post conversion of preference shares to ordinary shares, shareholders of NBK will be entitled to a stake of 4.8% of KCB Let me re-check
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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obiero wrote:Ericsson wrote:@obiero
That has been factored. Refer to the offer document.
Post conversion of preference shares to ordinary shares, shareholders of NBK will be entitled to a stake of 4.8% of KCB Let me re-check Does it mean the 'dilution' of NBK shares to current KCB shareholders will be 4.8%? In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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