NCBA Explains Why It Settled on Nedbank Despite Multiple Acquisition Offers

NCBA Group, currently in the process of being acquired by South Africa’s Nedbank, has explained why it chose the lender despite receiving multiple acquisition offers.

Speaking to the media on Thursday, January 22, 2026, NCBA Group CEO John Gachora said the board prioritised a deal that would minimise disruption to the business, protect the company’s brand, safeguard staff, and avoid the complex integration processes that have affected past mergers in the region.

“Nedbank’s offer to acquire a controlling 66% stake, valued at KSh 109.9 billion, was considered the best fit as it preserves NCBA’s identity while allowing for strategic growth,” Gachora said.

Deal Structure Between NCBA and Nedbank and Shareholder Details

Under the proposed transaction, 80% of the consideration will be paid in Nedbank shares listed on the Johannesburg Stock Exchange (JSE), while the remaining 20% will be paid in cash. Shareholders who would receive fewer than 200 Nedbank shares or are restricted from investing offshore will be paid entirely in cash.

Also Read: South African Bank Moves to Acquire 66% Stake in NCBA Group

The NCBA Group Chair noted that the deal aims to ensure a smooth transition while protecting shareholder value.

Meanwhile, NCBA Group Director of Strategy Louisa Wandabwa said the market has already responded positively.

“Since the market opened, we’ve seen an 8% improvement in our stock price, and we expect this trend to continue as investors recognise the opportunities this deal unlocks for NCBA,” Wandabwa said.

On Thursday, January 22, NCBA closed trading at KSh 98.25 per share, up from an opening price of KSh 89.75.

Strategic Investment Proposal from Nedbank

NCBA’s announcement comes shortly after receiving a strategic investment proposal and Notice of Intention from Nedbank to acquire approximately 66% of its ordinary shares through a tender offer. The proposed transaction, valued at 1.4 times NCBA’s book value, will see NCBA become a subsidiary of Nedbank while retaining its listing on the Nairobi Securities Exchange (NSE).

Under the terms of the tender offer, participating NCBA shareholders will receive 20% of their consideration in cash and 80% in Nedbank ordinary shares.

While Nedbank will hold a controlling stake, 34% of NCBA’s shares will remain listed on the NSE. The existing NCBA board will be maintained, with Nedbank nominating at least two directors and NCBA shareholders appointing one representative to Nedbank’s board.

About NCBA Group

NCBA Group is a full-service banking group offering a wide range of financial products to corporate, institutional, SME, and consumer customers.

Also Read: NCBA Names Uhuru Kenyatta’s Brother as New Director

The group operates 122 branches across five countries, Kenya, Uganda, Tanzania, Rwanda, and the Ivory Coast, and serves over 60 million customers, making it the largest banking group in Africa by customer numbers. NCBA is also among the region’s leading banks by assets and a market leader in corporate banking, asset finance, and digital banking.

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