Nedbank Group says it has completed its acquisition of a 66% stake in Kenya's NCBA Group, in a deal that expands the South African bank's footprint in East Africa.
Nedbank confirmed the completion in an announcement to shareholders on the JSE's SENS news service on Thursday 5 November. The deal was previously valued at about R13.9bn.
How the deal is structured
According to the figures reported from the announcement, the transaction involved a cash payment of about R2.9bn and the issue of about 43.6 million new Nedbank shares.
NCBA will continue to be listed in Nairobi. It operates in Kenya, Uganda, Tanzania and Rwanda.
Why it matters
The completed deal gives Nedbank direct ownership of a large banking group in East Africa, a region where South African lenders have been looking for growth outside their home market. Shareholders in both banks will be watching how the new share issue and the enlarged group affect earnings.
