NBK shareholders approve share conversion

National Bank of Kenya (NBK) shareholders have approved the conditional conversion of preference shares into ordinary shares upon the completion of a proposed takeover by KCB Group.

KCB intends to acquire up to 100 per cent of the ordinary shares of NBK through a share swap of one ordinary share of KCB for every 10 ordinary shares of the latter.

The offer requires that the 1,135,000,000 preference shares held by the two principal shareholders - the National Treasury and National Social Security Fund - be converted on a one for one basis into ordinary shares.

NBK chairman Mohamed Hassan said the bank remains a strong institution with support from shareholders and customers as well as regulators.

“The management and staff of NBK have our full support as they continue delivering solutions to customers. The preservation of value remains the most important tenet for all the stakeholders and the board is working with management to ensure that ongoing business initiatives continue unabated,” he said.