NCBA Group shareholders have approved the listing of an additional 606,195,135 ordinary shares of Kenya shilling five (KSh5) each over the next five years.
This is according to the resolution that was passed during the Group’s virtual 60th Annual General Meeting held on July 24.
“To authorize Directors to issue up to 606,195,135 new ordinary shares of Shs. 5 each over a maximum of 5 years and to take any required ancillary actions,” reads the resolution that was passed by 99.5 percent of the shareholders.
Consequently, the board will increase NCBA’s nominal capital from KSh7,969,024,325 comprising 1,593,804,865 ordinary shares.
However, the listed ordinary shares shall not participate in any dividend declared by NCBA for the period leading up to the allotment and issuance.
Shareholders also voted to increase the maximum number of directors from thirteen to fifteen.
“In recognition of the complexity and additional dynamics introduced as a result of the merger, the Board deemed it necessary to expand the capacity for appointing Directors with additional critical skills to complement those that already exist,” said the Group in a response to a shareholder.
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NCBA is the product of a merger between Commercial Bank of Africa Limited and NIC Group PLC, a transaction that was completed in October 2019.
The Group consists of NCBA Group PLC (a non-operating holding company), NCBA Bank Kenya PLC, and several financial services subsidiaries operating primarily within the East African region.
The Company became NCBA Group PLC (NCBA) on 1st October 2019. Since then, the new brand has been unveiled, the Board of Directors constituted, and 793.8 million new shares were listed at the Nairobi Securities Exchange on 22 October 2019.
“In the next year, we will concentrate a lot of our efforts in consolidating our business, ensuring the best of our twin heritage is rolled out smoothly across the region and even internally.
We anticipate receiving the remaining regulatory approvals in Uganda and Tanzania to operate as NCBA soon and these will allow us to consolidate our business in the region,” said James Ndegwa, the NCBA Group Chairman in the 2019 Annual Report.
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