- Nedbank has offered to buy a controlling stake in NCBA Group
- The proposal values the Kenyan lender at about KSh110 billion
- Major shareholders have already backed the transaction
- Small investors are set to receive a cash payout above market price
- Nedbank may go for full ownership if regulators allow
Nedbank Group of South Africa has tabled a major offer to acquire a large stake in Kenya’s NCBA Group, marking one of the biggest banking deals in the region in recent years.
The proposal targets 66 per cent ownership through a mix of cash and Nedbank shares, placing the total value of the deal at roughly KSh110 billion.
According to details released, the offer prices NCBA at about 1.4 times its book value. The bid has already received backing from key shareholders, including interests linked to the Jomo Kenyatta and Philip Ndegwa families.
Together, these shareholders control about 28 per cent of NCBA, giving the transaction strong early support.
Under the agreement, minority shareholders will receive a full cash payment of KSh105 per share. This figure is around 16 per cent higher than NCBA’s current market price of about KSh90 per share.
The offer is expected to appeal to retail investors looking for an immediate return.
Unlike small investors, major shareholders will not receive all their payment in cash. Instead, they will be compensated through a combination of cash and shares in Nedbank Group.
This structure is aimed at aligning long-term interests between the two banking groups.
Nedbank has also indicated it is open to buying 100 per cent of NCBA Group. However, this would only happen if regulators exempt it from making a mandatory offer by May 31, 2026.
Such a move would fully place NCBA under Nedbank’s control.
Nedbank Group Limited ranks among South Africa’s largest banks, with total assets valued at about $84.38 billion. The lender is listed on the Johannesburg Stock Exchange and has operations across several African markets.
If approved, the NCBA deal would significantly strengthen Nedbank’s footprint in East Africa.
The proposed acquisition signals growing interest by regional banks in Kenya’s financial sector. Analysts say the deal could reshape competition in the banking industry if it goes through.
For now, investors and regulators will be watching closely as the transaction moves to the approval stage.
