NCBA Group PLC, a leading financial services provider in East Africa, has received a Strategic Investment Proposal and Notice of Intention (NOI) from South Africa’s Nedbank Group Limited.
The proposal outlines a tender offer to acquire approximately 66% of NCBA’s ordinary shares, giving Nedbank a controlling interest. The remaining 34% of NCBA shares will stay listed on the Nairobi Securities Exchange (NSE).
Transaction Valuation and Offer Structure
The planned acquisition values NCBA at 1.4 times its book value. Shareholders participating in the tender offer will receive 20% of their consideration in cash, with the remaining 80% settled in Nedbank shares listed on the Johannesburg Stock Exchange (JSE).
NCBA’s Regional Footprint
NCBA operates across Kenya, Uganda, Tanzania, Rwanda, Ivory Coast, and Ghana, with 122 branches serving over 60 million customers. The Group is recognised for its strong digital banking services, asset finance leadership, and investment banking expertise.
Since 2021, NCBA has averaged a ~19% return on equity, holds KES 665 billion in assets, and disburses over KES 1 trillion in digital loans annually.
Nedbank’s Expansion Strategy in East Africa
Headquartered in South Africa, Nedbank is among Africa’s largest financial institutions, with listings on the JSE and Namibia Securities Exchange, and international offices in London, Dubai, Isle of Man, and Jersey. The acquisition aligns with Nedbank’s strategy to expand beyond Southern Africa into high‑growth East African markets, with Kenya serving as a strategic hub.
John Gachora, NCBA Group MD: “Nedbank is an ideal partner for our growth in East Africa. Their strong balance sheet and ESG leadership will help us scale in current markets and explore opportunities in DRC and Ethiopia.”
Jason Quinn, Nedbank CEO: “East Africa is a key growth region. Partnering with NCBA allows us to diversify beyond Southern Africa and anchor our expansion in Kenya, Rwanda, Tanzania, and Uganda.”
Market Synergies and Customer Impact
The partnership is expected to deliver significant synergies:
- Enhanced corporate and investment banking capabilities through Nedbank’s global presence.
- Expanded lending capacity and infrastructure support for NCBA.
- Career growth opportunities for NCBA staff across multiple geographies.
- Continued preservation of NCBA’s brand, governance, and management team.
Regulatory Approvals and Timeline
The transaction is subject to approvals from central banks and regulators across relevant jurisdictions. Completion is expected within six to nine months.
