Absa Group Seeks to Increase Stake in Absa Bank Kenya to 85%
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Absa Group Limited has announced plans to increase its ownership in Absa Bank Kenya PLC through a tender offer targeting existing shareholders.
In a notice dated Friday, June 19, the South African banking group said it intends to acquire up to 895.9 million additional ordinary shares in Absa Bank Kenya from other shareholders.
Absa Group currently owns about 68.5% of Absa Bank Kenya’s issued share capital. If the offer is fully taken up, its stake in the lender will rise to 85%.
The group has offered shareholders Ksh 34.50 per share, which is higher than the bank’s recent trading prices on the Nairobi Securities Exchange (NSE).
Absa Kenya said it received a notice from Absa Group on June 18 expressing its intention to acquire the additional shares through a tender offer.
The offer will be open to all shareholders who wish to sell their shares to Absa Group.
Offer Subject to Regulatory Approval
The proposed transaction is subject to approval by the Capital Markets Authority (CMA). Absa Group is also seeking an exemption from the requirement to make a full takeover offer for all the bank’s shares.
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The company said it does not intend to acquire more than the targeted 895.9 million shares and plans to maintain Absa Bank Kenya’s listing on the NSE after the transaction.
“The Tender Offer will be open to all shareholders of Absa Kenya, and Absa Group will only acquire additional shares from those shareholders who choose to sell their shares,” the notice stated.
The Central Bank of Kenya (CBK) and the Prudential Authority of the South African Reserve Bank have already approved the proposed increase in shareholding.
Why Absa Wants More Shares
Absa Group said the move reflects its long-term commitment to Kenya and East Africa, which it considers an important growth market.
The lender said its strategy is focused on expanding its presence in key African markets while improving efficiency and returns.
It added that it remains confident in the future of Absa Kenya, the Kenyan banking sector, and the wider East African economy.
Absa also stressed that it intends to keep Absa Bank Kenya listed on the Nairobi Securities Exchange, allowing local investors to continue trading the bank’s shares.
When the Offer Could Open
If CMA approval is granted, the tender offer is expected to open on June 30, 2026, and remain open for 30 business days until August 11, 2026.
Shareholders who choose to participate will only be allowed to tender shares that are free from any legal restrictions or claims.
Absa Bank Kenya and investors have been advised to exercise caution when trading the bank’s shares until further announcements are made regarding the proposed transaction.
If shareholders sell all the targeted shares, Absa Group’s stake in Absa Bank Kenya will rise from 68.5% to 85%, while the lender will remain listed on the Nairobi Securities Exchange.
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Absa Group branch in Nairobi. PHOTO/The Standard