NBK owners approve plan to dilute Treasury, NSSF grip

National Bank Chief Executive Officer Munir Ahmed. [PHOTO: FILE]

National Bank shareholders have approved a plan to redeem 1.135 billion preference shares held by Treasury and National Social Security Fund (NSSF). The bank plans to use part of the proceeds from the forthcoming Sh13 billion Rights Issue to redeem the shares, a move expected to boost its capital base.

Speaking at the bank’s 45th Annual General Meeting on Friday, Chief Executive Officer Munir Ahmed, (pictured) said the redemption exercise would significantly improve the value to the owners of the company, especially the ordinary shareholders.