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KCB and NBK material announcement
muganda
#1 Posted : Thursday, April 18, 2019 10:47:54 AM
Rank: Elder


Joined: 9/15/2006
Posts: 3,865
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
bartum
#2 Posted : Thursday, April 18, 2019 11:08:50 AM
Rank: Veteran


Joined: 8/11/2010
Posts: 1,002
Location: nairobi
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
KulaRaha
#3 Posted : Thursday, April 18, 2019 11:39:51 AM
Rank: Elder


Joined: 7/26/2007
Posts: 6,455
NBK is junk, it will negatively affect KCB performance in the short-term.
Business opportunities are like buses,there's always another one coming
littledove
#4 Posted : Thursday, April 18, 2019 12:43:27 PM
Rank: Member


Joined: 7/1/2014
Posts: 743
Location: sky
what was the announcement? kcb now trading
There are only two emotions in the stock market, fear and hope. The problem is, you hope when you should fear and fear when you should hope
muganda
#5 Posted : Thursday, April 18, 2019 12:46:58 PM
Rank: Elder


Joined: 9/15/2006
Posts: 3,865
KulaRaha wrote:
NBK is junk, it will negatively affect KCB performance in the short-term.


Ericsson
#6 Posted : Thursday, April 18, 2019 1:06:42 PM
Rank: Elder


Joined: 12/4/2009
Posts: 7,718
Location: NAIROBI
KCB intends to acquire 100% of the ordinary shares with a par value of Ksh.5 of National Bank of Kenya.
The offer shall be a way of a share swap of 10 ordinary shares of NBK shares for every 1 ordinary share of KCB.
Ericsson
#7 Posted : Thursday, April 18, 2019 1:24:55 PM
Rank: Elder


Joined: 12/4/2009
Posts: 7,718
Location: NAIROBI
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


Please note NBK and KCB will resume trading at 12.30pm
Ericsson
#8 Posted : Thursday, April 18, 2019 1:35:42 PM
Rank: Elder


Joined: 12/4/2009
Posts: 7,718
Location: NAIROBI
Top 10 NBK Shareholders as at 31 December 2017

National Social Security Fund 162,802,746 48.10%
2.The Permanent Secretary To The Treasury 76,230000 22.50%
3.Kenya Reinsurance Corporation Limited 4,840,000 1.40%
4.Best Investment Decisions Limited 2,350,271 0.70%
5.Co-op Bank Custody A/C 4003a 1,864,863 0.60%
6.Craysell Investments Limited 1,431,069 0.40%
7.NIC Custodial Services A/C 077 1,405,245 0.40%
8.Equity Nominee Ltd A/C00084 1,256,343 0.40%
9.NBK Client A/c 1 1,143,450 0.30%
10.Eng. Ephraim Mwangi Maina 105,003 0.30%
11.Others 84,371,010 24.90%

TOTAL 338,800,000
KaunganaDoDo
#9 Posted : Thursday, April 18, 2019 2:34:48 PM
Rank: Member


Joined: 8/6/2018
Posts: 199
Ericsson wrote:
KCB intends to acquire 100% of the ordinary shares with a par value of Ksh.5 of National Bank of Kenya.
The offer shall be a way of a share swap of 10 ordinary shares of NBK shares for every 1 ordinary share of KCB.


Is a good deal for both KCB and NBK....Though its the NBK shareholders to laugh all the way to the bank...KCB will have to recapitalize by way off injecting new Capital into NBK...Its a winner takes all. With new capital, and increased deposits through GOVERNMENT SINGLE TREASURY ACCOUNT, NBK will lend and lend and lend ....
shocks
#10 Posted : Thursday, April 18, 2019 2:39:27 PM
Rank: Member


Joined: 3/15/2009
Posts: 343
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?

KaunganaDoDo
#11 Posted : Thursday, April 18, 2019 3:32:37 PM
Rank: Member


Joined: 8/6/2018
Posts: 199
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..

KaunganaDoDo
#12 Posted : Thursday, April 18, 2019 3:34:19 PM
Rank: Member


Joined: 8/6/2018
Posts: 199
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..
Ericsson
#13 Posted : Thursday, April 18, 2019 3:58:26 PM
Rank: Elder


Joined: 12/4/2009
Posts: 7,718
Location: NAIROBI
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..


Paste here the offer document.
NBK said the offer was conditional on it delisting its shares from the Nairobi Securities Exchange and converting its preference shares into ordinary shares.
If the conversion of preference shares is as above,then it means prior to the acquisition GoK will be the majority shareholder in NBK and not NSSF.

FRM2011
#14 Posted : Thursday, April 18, 2019 4:26:16 PM
Rank: Elder


Joined: 11/5/2010
Posts: 2,402
Hope KCB will undertake a massive restructuring at NBK. The board and management of the latter are rotten to the core.

Can you imagine NBK management leasing premises for a new branch, renovate, brand, install everything including computers, network and ATMs, then pays rent for a whole 3 years withoutbecause opening because they realised its not viable. Case in point - Nanyuki.
Ericsson
#15 Posted : Thursday, April 18, 2019 4:30:58 PM
Rank: Elder


Joined: 12/4/2009
Posts: 7,718
Location: NAIROBI
Ericsson
#16 Posted : Thursday, April 18, 2019 4:36:33 PM
Rank: Elder


Joined: 12/4/2009
Posts: 7,718
Location: NAIROBI
Ericsson 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..


Paste here the offer document.
NBK said the offer was conditional on it delisting its shares from the Nairobi Securities Exchange and converting its preference shares into ordinary shares.
If the conversion of preference shares is as above,then it means prior to the acquisition GoK will be the majority shareholder in NBK and not NSSF.



The par value of Treasury’s portion of the preference shares is Sh4.5 billion with NSSF’s claim at about Sh1.2 billion, adding up to a total of Sh5.7 billion.
Gok Owns 79% of the Preference shares and NSSF 21%
KaunganaDoDo
#17 Posted : Thursday, April 18, 2019 5:06:32 PM
Rank: Member


Joined: 8/6/2018
Posts: 199
Ericsson 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..


Paste here the offer document.
NBK said the offer was conditional on it delisting its shares from the Nairobi Securities Exchange and converting its preference shares into ordinary shares.
If the conversion of preference shares is as above,then it means prior to the acquisition GoK will be the majority shareholder in NBK and not NSSF.


KCB TAKEOVER
VituVingiSana
#18 Posted : Thursday, April 18, 2019 5:51:19 PM
Rank: Chief


Joined: 1/3/2007
Posts: 16,581
Location: Nairobi
KulaRaha wrote:
NBK is junk, it will negatively affect KCB performance in the short-term.
If KCB buys NBK for a song then KCB may benefit. KCB may have the resources, heft and experience to follow up on the NPLs. Didn't KCB also want a guarantee to keep the business that GoK gives NBK?

Yes, I agree about the short-term hit but the long-term benefits may outweigh the negatives.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
VituVingiSana
#19 Posted : Thursday, April 18, 2019 5:58:18 PM
Rank: Chief


Joined: 1/3/2007
Posts: 16,581
Location: Nairobi
KaunganaDoDo wrote:
Ericsson wrote:
KCB intends to acquire 100% of the ordinary shares with a par value of Ksh.5 of National Bank of Kenya.
The offer shall be a way of a share swap of 10 ordinary shares of NBK shares for every 1 ordinary share of KCB.


Is a good deal for both KCB and NBK....Though its the NBK shareholders to laugh all the way to the bank...KCB will have to recapitalize by way off injecting new Capital into NBK...Its a winner takes all. With new capital, and increased deposits through GOVERNMENT SINGLE TREASURY ACCOUNT, NBK will lend and lend and lend ....
Not really. It is likely that NBK's business will be absorbed into KCB rather than NBK being run as a separate bank with fresh capital.
NBK will probably become a subsidiary but will remain "open" (as a firm not an operating bank) as it pursues defaulters.

I&M still has Giro as a "subsidiary" but I think that's to keep the continuity for legal reasons e.g. for an ongoing lawsuit. Defaulters would go to court to fight a change in the name of the plaintiff from NBK to KCB. Many of our courts/judges are weird or ignorant in commercial matters.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
omega
#20 Posted : Thursday, April 18, 2019 5:59:26 PM
Rank: Member


Joined: 6/9/2009
Posts: 69
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.
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