Kenya’s largest lender in asset value and shareholder capital Kenya Commercial Bank Group plans to finalize the acquisition of collapsed Imperial Bank by end of this month.
Speaking during the release of the group’s half year 2019 results, Chief executive Joshua Oigara the deal will go on despite the ongoing restriction.
“The transaction, in which the lender will pay a nominal Sh10 per share, will be implemented through its local subsidiary KCB Bank Kenya Limited, Said Oigara.
Among assets to be acquired include Imperial Bank’s five branches and a portion of its loans and deposits.
The transaction will go alongside the merger with National Bank of Kenya (NBK).
KCB served NBK the detailed offer on June 19, following shareholder approval where the largest banks will acquire 100 per cent stake of the state-owned bank through a share swap deal, comprising of 10 ordinary shares of NBK for every one ordinary share of KCB.
The offer period to swap shares closes on August 30.
“We are on-course still engaging with parliament with questions they raised. We are confident that both transactions will be completed by August 30,” Oigara said.
According to Oigara, majority of KCB shareholders have endorsed the transactions while individual shareholders out of NBK’s 55,000 small shareholders at NBK have also committed themselves.
NBK will however operate independently for a year after the merger.
Despite the mergers, the bank will have to wait until the next 25 months to hit the much expected Sh1 trillion base mark in asset value.