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KCB and NBK material announcement
Ericsson
#61 Posted : Friday, May 24, 2019 9:20:27 AM
Rank: Elder


Joined: 12/4/2009
Posts: 7,593
Location: NAIROBI
Angelica _ann wrote:
obiero wrote:
Ericsson wrote:
@obiero
That has been factored. Refer to the offer document.
Post conversion of preference shares to ordinary shares, shareholders of NBK will be entitled to a stake of 4.8% of KCB

Let me re-check


Does it mean the 'dilution' of NBK shares to current KCB shareholders will be 4.8%?

Yes
They will be allocated 147mn KCB shares
obiero
#62 Posted : Friday, May 24, 2019 9:54:54 AM
Rank: Elder


Joined: 6/23/2009
Posts: 12,358
Location: nairobi
omega wrote:
KaunganaDoDo wrote:
shocks wrote:
bartum wrote:
muganda wrote:
Nairobi Securities Exchange has today morning stopped trading in KCB Group and National Bank shares over a material announcement affecting the two counters.

Is KCB planning to buy National Bank? https://www.the-star.co....g-to-buy-national-bank/

In the period ending December 31, 2018 National Bank reported a 98.3 per cent drop in profit

How will this affect value of kcb, i have a material holding

Figures to watch out for is the non performing loans and the costs.
Assuming a large part of the non performing loans are written off, KCB will only get about 90billion in extra assets vs customer deposits of 98 biliion.
Income side they are getting nothing.
How fast will they cut costs on the N.B.K side and at what cost is the question.
Share dilution isn't much, about 1% if you consider ordinary shares. How will prefence shares be handled?


Conversion of the NBK outstanding stock of preference shares 1,135,000,000 is proposed to be 1 for 1 ordinary shares as per the offer..


So total NBK issued shares will be 1,443,000,000 (1,135,000,000 + 308,000,000) after preference shares conversion. This means KCB will issue 144,3000,000 shares to acquire the whole NBK. Given that KCB total issued shares is about 3 billion, this represents a dilution of about 4.8 percent.

The dilution is 4.8% but what is the new GoK holding sum in KCB..
NATIONAL BANK OF KENYA LIMITED NBK was established in 1968 as a 100% government-owned financial institution. In 1994, the Kenyan Government reduced its shareholding to 68% by selling 32% shareholding to the public. In 2003, the bank increased its share capital to Kes. 9 billion through the creation of 1,200,000,000 non-cumulative preference shares of Kes. 5.00 each. The government further divested from NBK over the years, until its present shareholding of 22.5%, as of end of March 2019. NBK is listed on the Main Investment Market Segment of the NSE.
The authorised share capital of NBK is Kes 13,000,000,000.00 divided into 1,400,000,000 ordinary shares of Kes 5.00 each and 1,200,000,000 non-cumulative preference shares of Kes. 5.00 each. The issued and fully paid share capital is Kes 7,368,906,000.00 divided into 338,781,200 ordinary shares of Kes 5.00 each and 1,135,000,000 non-cumulative preference shares of Kes. 5.00 each.
COOP 5,500 ABP12.6; HF 2,000 ABP 5.90; KCB 7,500 ABP 36; KNRE 100,000 ABP 2.90; KQ 221,100 ABP 12.68
tandich
#63 Posted : Tuesday, May 28, 2019 10:45:07 PM
Rank: Member


Joined: 5/6/2008
Posts: 162
National Bank takeover bid hit by legal issues

This may not be a straightforward deal as I initially imagined. But when have small matters of legalities overly troubled the current regime? If they really want it done, they will by any means necessary.
Ericsson
#64 Posted : Monday, June 03, 2019 9:59:16 PM
Rank: Elder


Joined: 12/4/2009
Posts: 7,593
Location: NAIROBI
The management of NBK has agreed to the proposed KCB acquisition.
Now waiting shareholders approval.
Ericsson
#65 Posted : Tuesday, June 04, 2019 9:27:42 AM
Rank: Elder


Joined: 12/4/2009
Posts: 7,593
Location: NAIROBI
The National Bank of Kenya majority shareholders — the National Treasury and the National Social Security Fund (NSSF) — are supporting the lender’s takeover by KCB Group through a share swap deal.

Endorsement by the two institutions means the transaction is set to go through since the remaining National Bank of Kenya (NBK) shareholders control a minority 6.77 percent stake combined.

Treasury and NSSF, which have a 93.23 percent interest in NBK, are also among the largest investors in KCB.

https://www.businessdail...43824-hngam9z/index.html
sparkly
#66 Posted : Tuesday, June 04, 2019 11:20:19 AM
Rank: Elder


Joined: 9/23/2009
Posts: 7,368
Location: Enk are Nyirobi
[quote=Ericsson]The National Bank of Kenya majority shareholders — the National Treasury and the National Social Security Fund (NSSF) — are supporting the lender’s takeover by KCB Group through a share swap deal.

Endorsement by the two institutions means the transaction is set to go through since the remaining National Bank of Kenya (NBK) shareholders control a minority 6.77 percent stake combined.

Treasury and NSSF, which have a 93.23 percent interest in NBK, are also among the largest investors in KCB.

https://www.businessdail...3824-hngam9z/index.html[/quote]


Doctor Opus is a very effective guy.
Life is short. Live passionately.
Ericsson
#67 Posted : Tuesday, June 04, 2019 4:31:01 PM
Rank: Elder


Joined: 12/4/2009
Posts: 7,593
Location: NAIROBI
sparkly wrote:
[quote=Ericsson]The National Bank of Kenya majority shareholders — the National Treasury and the National Social Security Fund (NSSF) — are supporting the lender’s takeover by KCB Group through a share swap deal.

Endorsement by the two institutions means the transaction is set to go through since the remaining National Bank of Kenya (NBK) shareholders control a minority 6.77 percent stake combined.

Treasury and NSSF, which have a 93.23 percent interest in NBK, are also among the largest investors in KCB.

https://www.businessdail...3824-hngam9z/index.html[/quote]


Doctor Opus is a very effective guy.


Had he be given the full authority we would now be having no more than 30 banks
obiero
#68 Posted : Tuesday, June 04, 2019 10:09:42 PM
Rank: Elder


Joined: 6/23/2009
Posts: 12,358
Location: nairobi
obiero wrote:
Ericsson wrote:
obiero wrote:
Angelica _ann wrote:
Ericsson wrote:
obiero wrote:
VituVingiSana wrote:
obiero wrote:
The Government has pushed through its agenda in the conversion of preference shares held in National Bank of Kenya (NBK), dealing workers' pension savings at the public pension fund a huge blow. Implications of the agreement will be significant, especially at KCB, which is in the process of finalizing the complete takeover of NBK. Individual and institutional investors will be the biggest losers in the agreed structure with their shareholding diminishing from 29.5 per cent to about 6.7 per cent The Government has leapfrogged the National Social Security Fund (NSSF) as the biggest shareholder in NBK, thanks to the hitherto elusive agreement. Jointly, the two entities control nearly 93.2 per cent of NBK, pending shareholder approval on the treatment of the 1.2 billion preferential shares. In the proposed formula, the preference shares will be converted one-for-one with ordinary stock, which constitutes the actual ownership. Holders of preferential shares earn a predetermined dividend over time, but do not have voting rights, unlike for ordinary shares. NBK Company Secretary Habil Waswani has announced that the retirement of the preference shares will be an item of discussion in the upcoming annual general meeting slated for June 14. He added that the proposals would be subject to regulatory approvals of the takeover of the bank by KCB - the country's biggest lender.

NBK shareholders have lucked out. If CBK was allowed to apply the same regulations/guidelines to NBK like it did to Imperial or Chase then NBK would have closed down years ago.

True, in government safety is found.. Diluted or not.. Atleast it won't be put under an administrator


NSSF also gave a consent to the conversion of the preference shares to ordinary shares for it to sail through.Previously they were the stumbling block.
Other ordinary shares wajipange


That is serious dilution for minority shareholders. Saad.

Massive dilution without an Open Offer backstop.. GoK holding in simba goes up from current 17% to over 25% and then some lame folk will ask me to sell KCB, and forget GoK is also big in Safaricom, KENRE, KQ..


GoK shareholding will rise to 20% from 17%
Nssf shareholding will rise from 6.12% to 7.3%

Have you factored in the preference shares?

@Ericsson learn to keep an open mind.. It's an asset! https://www.businessdail...145102-qqg6lu/index.html
COOP 5,500 ABP12.6; HF 2,000 ABP 5.90; KCB 7,500 ABP 36; KNRE 100,000 ABP 2.90; KQ 221,100 ABP 12.68
Ericsson
#69 Posted : Wednesday, June 05, 2019 12:09:03 AM
Rank: Elder


Joined: 12/4/2009
Posts: 7,593
Location: NAIROBI
obiero wrote:
obiero wrote:
Ericsson wrote:
obiero wrote:
Angelica _ann wrote:
Ericsson wrote:
obiero wrote:
VituVingiSana wrote:
[quote=obiero]The Government has pushed through its agenda in the conversion of preference shares held in National Bank of Kenya (NBK), dealing workers' pension savings at the public pension fund a huge blow. Implications of the agreement will be significant, especially at KCB, which is in the process of finalizing the complete takeover of NBK. Individual and institutional investors will be the biggest losers in the agreed structure with their shareholding diminishing from 29.5 per cent to about 6.7 per cent The Government has leapfrogged the National Social Security Fund (NSSF) as the biggest shareholder in NBK, thanks to the hitherto elusive agreement. Jointly, the two entities control nearly 93.2 per cent of NBK, pending shareholder approval on the treatment of the 1.2 billion preferential shares. In the proposed formula, the preference shares will be converted one-for-one with ordinary stock, which constitutes the actual ownership. Holders of preferential shares earn a predetermined dividend over time, but do not have voting rights, unlike for ordinary shares. NBK Company Secretary Habil Waswani has announced that the retirement of the preference shares will be an item of discussion in the upcoming annual general meeting slated for June 14. He added that the proposals would be subject to regulatory approvals of the takeover of the bank by KCB - the country's biggest lender.

NBK shareholders have lucked out. If CBK was allowed to apply the same regulations/guidelines to NBK like it did to Imperial or Chase then NBK would have closed down years ago.

True, in government safety is found.. Diluted or not.. Atleast it won't be put under an administrator


NSSF also gave a consent to the conversion of the preference shares to ordinary shares for it to sail through.Previously they were the stumbling block.
Other ordinary shares wajipange


That is serious dilution for minority shareholders. Saad.

Massive dilution without an Open Offer backstop.. GoK holding in simba goes up from current 17% to over 25% and then some lame folk will ask me to sell KCB, and forget GoK is also big in Safaricom, KENRE, KQ..


GoK shareholding will rise to 20% from 17%
Nssf shareholding will rise from 6.12% to 7.3%

Have you factored in the preference shares?

@Ericsson learn to keep an open mind.. It's an asset! https://www.businessdail...45102-qqg6lu/index.html[/quote]

@obiero learn to read details and don't follow headlines blindly.You will never go wrong
Its GOK plus NSSF combined Shareholding like i mentioned.
VituVingiSana
#70 Posted : Wednesday, June 05, 2019 3:01:43 AM
Rank: Chief


Joined: 1/3/2007
Posts: 16,498
Location: Nairobi
Central Bank questions NBK’s valuation ahead of merger
https://www.standardmedi...luation-ahead-of-merger

The banking sector regulator has accused National Bank of Kenya (NBK) officials of running down the State-owned lender, whittling its value by 80 per cent in three years.


What does this mean?
However, according to the law, CAK only prohibits implementation of a merger where parties pay more than 20 per cent of the agreed price.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
obiero
#71 Posted : Wednesday, June 05, 2019 5:58:43 AM
Rank: Elder


Joined: 6/23/2009
Posts: 12,358
Location: nairobi
Ericsson wrote:
obiero wrote:
obiero wrote:
Ericsson wrote:
obiero wrote:
Angelica _ann wrote:
Ericsson wrote:
obiero wrote:
VituVingiSana wrote:
[quote=obiero]The Government has pushed through its agenda in the conversion of preference shares held in National Bank of Kenya (NBK), dealing workers' pension savings at the public pension fund a huge blow. Implications of the agreement will be significant, especially at KCB, which is in the process of finalizing the complete takeover of NBK. Individual and institutional investors will be the biggest losers in the agreed structure with their shareholding diminishing from 29.5 per cent to about 6.7 per cent The Government has leapfrogged the National Social Security Fund (NSSF) as the biggest shareholder in NBK, thanks to the hitherto elusive agreement. Jointly, the two entities control nearly 93.2 per cent of NBK, pending shareholder approval on the treatment of the 1.2 billion preferential shares. In the proposed formula, the preference shares will be converted one-for-one with ordinary stock, which constitutes the actual ownership. Holders of preferential shares earn a predetermined dividend over time, but do not have voting rights, unlike for ordinary shares. NBK Company Secretary Habil Waswani has announced that the retirement of the preference shares will be an item of discussion in the upcoming annual general meeting slated for June 14. He added that the proposals would be subject to regulatory approvals of the takeover of the bank by KCB - the country's biggest lender.

NBK shareholders have lucked out. If CBK was allowed to apply the same regulations/guidelines to NBK like it did to Imperial or Chase then NBK would have closed down years ago.

True, in government safety is found.. Diluted or not.. Atleast it won't be put under an administrator


NSSF also gave a consent to the conversion of the preference shares to ordinary shares for it to sail through.Previously they were the stumbling block.
Other ordinary shares wajipange


That is serious dilution for minority shareholders. Saad.

Massive dilution without an Open Offer backstop.. GoK holding in simba goes up from current 17% to over 25% and then some lame folk will ask me to sell KCB, and forget GoK is also big in Safaricom, KENRE, KQ..


GoK shareholding will rise to 20% from 17%
Nssf shareholding will rise from 6.12% to 7.3%

Have you factored in the preference shares?

@Ericsson learn to keep an open mind.. It's an asset! https://www.businessdail...45102-qqg6lu/index.html[/quote]

@obiero learn to read details and don't follow headlines blindly.You will never go wrong
Its GOK plus NSSF combined Shareholding like i mentioned.

You mean National Treasury plus NSSF. GoK actually includes NSSF
COOP 5,500 ABP12.6; HF 2,000 ABP 5.90; KCB 7,500 ABP 36; KNRE 100,000 ABP 2.90; KQ 221,100 ABP 12.68
Ericsson
#72 Posted : Wednesday, June 05, 2019 1:04:04 PM
Rank: Elder


Joined: 12/4/2009
Posts: 7,593
Location: NAIROBI
NBK requires capital injection 💉 to the tune of ksh.13bn to keep it afloat and comply with statutory regulations
VituVingiSana
#73 Posted : Wednesday, June 05, 2019 10:29:16 PM
Rank: Chief


Joined: 1/3/2007
Posts: 16,498
Location: Nairobi
Ericsson wrote:
NBK requires capital injection 💉 to the tune of ksh.13bn to keep it afloat and comply with statutory regulations

It will not matter given anything KCB injects into NBK will be "returned" once the acquisition is complete. Right pocket to left pocket.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Ericsson
#74 Posted : Thursday, June 06, 2019 10:09:36 AM
Rank: Elder


Joined: 12/4/2009
Posts: 7,593
Location: NAIROBI
KCB Group CEO Joshua Oigara informed investors that they plan to fire NBK’s board and management team after they acquire the bank. “The board does not intend to keep the management of NBK. The board has no intention of keeping the NBK board,”
VituVingiSana
#75 Posted : Thursday, June 06, 2019 10:32:23 AM
Rank: Chief


Joined: 1/3/2007
Posts: 16,498
Location: Nairobi
Ericsson wrote:
KCB Group CEO Joshua Oigara informed investors that they plan to fire NBK’s board and management team after they acquire the bank. “The board does not intend to keep the management of NBK. The board has no intention of keeping the NBK board,”
Laughing out loudly Laughing out loudly Laughing out loudly
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Pesa Nane
#76 Posted : Thursday, June 06, 2019 10:38:41 PM
Rank: Elder


Joined: 5/25/2012
Posts: 4,105
Location: 08c
VituVingiSana wrote:
Ericsson wrote:
KCB Group CEO Joshua Oigara informed investors that they plan to fire NBK’s board and management team after they acquire the bank. “The board does not intend to keep the management of NBK. The board has no intention of keeping the NBK board,”
Laughing out loudly Laughing out loudly Laughing out loudly


Laughing out loudly Laughing out loudly Laughing out loudly What a breaking news soon after they unanimously endorsed and whipped the shareholders into supporting the deal! Applause Applause Applause

(who will save us from current and past rehani house terrorist mafia?)
Pesa Nane plans to be shilingi when he grows up.
VituVingiSana
#77 Posted : Friday, June 07, 2019 12:00:06 AM
Rank: Chief


Joined: 1/3/2007
Posts: 16,498
Location: Nairobi
NBK boss's pay rises to Sh50m as woes deepen
https://www.businessdail...47664-d4xb1kz/index.html
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Ericsson
#78 Posted : Friday, June 07, 2019 9:09:09 AM
Rank: Elder


Joined: 12/4/2009
Posts: 7,593
Location: NAIROBI
[quote=VituVingiSana]NBK boss's pay rises to Sh50m as woes deepen
https://www.businessdail...7664-d4xb1kz/index.html[/quote]

He better make better use of that money.
From next year he may be jobless.
Horton
#79 Posted : Friday, June 07, 2019 9:12:28 AM
Rank: Veteran


Joined: 8/30/2007
Posts: 1,482
Location: Nairobi
Ericsson wrote:
KCB Group CEO Joshua Oigara informed investors that they plan to fire NBK’s board and management team after they acquire the bank. “The board does not intend to keep the management of NBK. The board has no intention of keeping the NBK board,”


👏🏽👏🏽👏🏽👏🏽👏🏽👏🏽
Ericsson
#80 Posted : Friday, June 07, 2019 5:03:14 PM
Rank: Elder


Joined: 12/4/2009
Posts: 7,593
Location: NAIROBI
Horton wrote:
Ericsson wrote:
KCB Group CEO Joshua Oigara informed investors that they plan to fire NBK’s board and management team after they acquire the bank. “The board does not intend to keep the management of NBK. The board has no intention of keeping the NBK board,”


👏🏽👏🏽👏🏽👏🏽👏🏽👏🏽


Including Francis Atwoli who is a board member at NBK.
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