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KCB and NBK material announcement
Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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Angelica _ann wrote: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%? Yes They will be allocated 147mn KCB shares 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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omega wrote:KaunganaDoDo wrote:shocks wrote:bartum wrote:muganda wrote:Nairobi Securities Exchange has today morning stopped trading in KCB Group and National Bank shares over a material announcement affecting the two counters. Is KCB planning to buy National Bank? https://www.the-star.co....g-to-buy-national-bank/ In the period ending December 31, 2018 National Bank reported a 98.3 per cent drop in profit How will this affect value of kcb, i have a material holding 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.. 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. The dilution is 4.8% but what is the new GoK holding sum in KCB.. NATIONAL BANK OF KENYA LIMITED NBK was established in 1968 as a 100% government-owned financial institution. In 1994, the Kenyan Government reduced its shareholding to 68% by selling 32% shareholding to the public. In 2003, the bank increased its share capital to Kes. 9 billion through the creation of 1,200,000,000 non-cumulative preference shares of Kes. 5.00 each. The government further divested from NBK over the years, until its present shareholding of 22.5%, as of end of March 2019. NBK is listed on the Main Investment Market Segment of the NSE. The authorised share capital of NBK is Kes 13,000,000,000.00 divided into 1,400,000,000 ordinary shares of Kes 5.00 each and 1,200,000,000 non-cumulative preference shares of Kes. 5.00 each. The issued and fully paid share capital is Kes 7,368,906,000.00 divided into 338,781,200 ordinary shares of Kes 5.00 each and 1,135,000,000 non-cumulative preference shares of Kes. 5.00 each. 
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Member Joined: 5/6/2008 Posts: 199
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National Bank takeover bid hit by legal issuesThis may not be a straightforward deal as I initially imagined. But when have small matters of legalities overly troubled the current regime? If they really want it done, they will by any means necessary.
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Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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The management of NBK has agreed to the proposed KCB acquisition. Now waiting shareholders approval. 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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The National Bank of Kenya majority shareholders — the National Treasury and the National Social Security Fund (NSSF) — are supporting the lender’s takeover by KCB Group through a share swap deal. Endorsement by the two institutions means the transaction is set to go through since the remaining National Bank of Kenya (NBK) shareholders control a minority 6.77 percent stake combined. Treasury and NSSF, which have a 93.23 percent interest in NBK, are also among the largest investors in KCB. https://www.businessdail...43824-hngam9z/index.htmlWealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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[quote=Ericsson]The National Bank of Kenya majority shareholders — the National Treasury and the National Social Security Fund (NSSF) — are supporting the lender’s takeover by KCB Group through a share swap deal. Endorsement by the two institutions means the transaction is set to go through since the remaining National Bank of Kenya (NBK) shareholders control a minority 6.77 percent stake combined. Treasury and NSSF, which have a 93.23 percent interest in NBK, are also among the largest investors in KCB. https://www.businessdail...3824-hngam9z/index.html[/quote] Doctor Opus is a very effective guy. Life is short. Live passionately.
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Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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sparkly wrote:[quote=Ericsson]The National Bank of Kenya majority shareholders — the National Treasury and the National Social Security Fund (NSSF) — are supporting the lender’s takeover by KCB Group through a share swap deal. Endorsement by the two institutions means the transaction is set to go through since the remaining National Bank of Kenya (NBK) shareholders control a minority 6.77 percent stake combined. Treasury and NSSF, which have a 93.23 percent interest in NBK, are also among the largest investors in KCB. https://www.businessdail...3824-hngam9z/index.html[/quote] Doctor Opus is a very effective guy. Had he be given the full authority we would now be having no more than 30 banks 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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obiero wrote: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? @Ericsson learn to keep an open mind.. It's an asset! https://www.businessdail...145102-qqg6lu/index.html
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:obiero wrote:Ericsson wrote:obiero wrote:Angelica _ann wrote:Ericsson wrote:obiero wrote:VituVingiSana wrote:[quote=obiero]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? @Ericsson learn to keep an open mind.. It's an asset! https://www.businessdail...45102-qqg6lu/index.html[/quote] @obiero learn to read details and don't follow headlines blindly.You will never go wrong Its GOK plus NSSF combined Shareholding like i mentioned. 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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Central Bank questions NBK’s valuation ahead of merger https://www.standardmedi...luation-ahead-of-merger
The banking sector regulator has accused National Bank of Kenya (NBK) officials of running down the State-owned lender, whittling its value by 80 per cent in three years.
What does this mean? However, according to the law, CAK only prohibits implementation of a merger where parties pay more than 20 per cent of the agreed price.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 wrote:obiero wrote:Ericsson wrote:obiero wrote:Angelica _ann wrote:Ericsson wrote:obiero wrote:VituVingiSana wrote:[quote=obiero]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? @Ericsson learn to keep an open mind.. It's an asset! https://www.businessdail...45102-qqg6lu/index.html[/quote] @obiero learn to read details and don't follow headlines blindly.You will never go wrong Its GOK plus NSSF combined Shareholding like i mentioned. You mean National Treasury plus NSSF. GoK actually includes NSSF
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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NBK requires capital injection 💉 to the tune of ksh.13bn to keep it afloat and comply with statutory regulations 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:NBK requires capital injection 💉 to the tune of ksh.13bn to keep it afloat and comply with statutory regulations It will not matter given anything KCB injects into NBK will be "returned" once the acquisition is complete. Right pocket to left pocket. 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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KCB Group CEO Joshua Oigara informed investors that they plan to fire NBK’s board and management team after they acquire the bank. “The board does not intend to keep the management of NBK. The board has no intention of keeping the NBK board,” 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:KCB Group CEO Joshua Oigara informed investors that they plan to fire NBK’s board and management team after they acquire the bank. “The board does not intend to keep the management of NBK. The board has no intention of keeping the NBK board,”  Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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NBK boss's pay rises to Sh50m as woes deepen https://www.businessdail...47664-d4xb1kz/index.htmlGreedy 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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[quote=VituVingiSana]NBK boss's pay rises to Sh50m as woes deepen https://www.businessdail...7664-d4xb1kz/index.html[/quote] He better make better use of that money. From next year he may be jobless. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 8/30/2007 Posts: 1,558 Location: Nairobi
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Ericsson wrote:KCB Group CEO Joshua Oigara informed investors that they plan to fire NBK’s board and management team after they acquire the bank. “The board does not intend to keep the management of NBK. The board has no intention of keeping the NBK board,” 👏🏽👏🏽👏🏽👏🏽👏🏽👏🏽
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Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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Horton wrote:Ericsson wrote:KCB Group CEO Joshua Oigara informed investors that they plan to fire NBK’s board and management team after they acquire the bank. “The board does not intend to keep the management of NBK. The board has no intention of keeping the NBK board,” 👏🏽👏🏽👏🏽👏🏽👏🏽👏🏽 Including Francis Atwoli who is a board member at NBK. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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