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Kenya's Kenyatta family has started collecting cash and shares worth about $132 million after South Africa's Nedbank Group Ltd. took control of NCBA Group Plc, the Nairobi lender in which the family of the country's founding president has long been a major investor.
Nedbank bought 1.087 billion NCBA shares, or 66% of the bank, in a block trade on the Nairobi Securities Exchange on Tuesday. The trade lifted the exchange's equity turnover for the day to 107.7 billion shillings ($829 million), and foreign investors bought about 107.2 billion shillings of shares, the most on record for a single day. The previous high, 42.52 billion shillings, was set on Oct. 19, when a company linked to Nigerian billionaire Aliko Dangote bought a stake in Kenya Pipeline Co.
Payments to NCBA's selling shareholders began with the transfer. Nedbank is paying about 23.23 billion shillings ($178.8 million) in cash and issuing about 43.63 million new shares, worth about R12.7 billion ($764 million) at Tuesday's Johannesburg close of R290.80. Final figures are due on Thursday.
What the families receive
Sellers receive 21 shillings in cash and 4.02994 new Nedbank shares for every 100 NCBA shares Nedbank buys from them, a mix of about 20% cash and 80% stock. Nedbank's share price has risen since the terms were set in January at a reference price of R250, which has made the package more valuable.
The Kenyatta family holds its stake mainly through Enke Investments Ltd., which owns 217.5 million NCBA shares. Muhoho Kenyatta, the younger brother of former President Uhuru Kenyatta and an NCBA director, owns another 12.75 million shares in his own name. On the 66% of those 230.25 million shares that each holder was entitled to sell, the family receives about 3.19 billion shillings ($24.6 million) in cash and about 6.12 million Nedbank shares worth R1.78 billion ($107.3 million).
The Ndegwa family, heirs of Philip Ndegwa, a former governor of the Central Bank of Kenya, is the bank's largest shareholder through First Chartered Securities Ltd., which owns 246.1 million shares, or 14.9%. Its share of the deal comes to about 3.41 billion shillings ($26.3 million) in cash and 6.55 million Nedbank shares worth R1.9 billion ($114.7 million), or about $141 million in all. James Ndegwa, the late governor's son, chairs NCBA.
The Merali family, which controls Yana Investments Ltd., the 89.1 million-share holding built by the late Sameer Group founder Naushad Merali, receives about 1.23 billion shillings ($9.5 million) and 2.37 million Nedbank shares worth R689 million ($41.5 million), for about $51 million.
Together, the three families' payouts come to about $324 million, up from about $319 million when the deal closed on Oct. 19, because Nedbank's shares have since gained about 2.8%. The figures are based on each family's basic 66% entitlement. Shareholders were also able to apply to sell more, and Nedbank accepted about 42% of the 395.7 million extra shares offered, so any family that took part will receive more.
Families keep a stake
The families also keep part of their NCBA holdings. At the base level, the Kenyattas retain about 78.3 million shares, the Ndegwas about 83.7 million and the Meralis about 30.3 million. NCBA shares closed at 91.75 shillings on Tuesday, up about 4% from 88 shillings before the suspension, valuing those three holdings at about 17.6 billion shillings ($136 million).
NCBA's shares had been suspended from Oct. 21 while the bank reconciled its share register, after holders of 79.9% of its stock accepted the offer. The bank will remain listed in Nairobi, with the 34% that Nedbank did not buy still trading.
The deal gives Nedbank, one of South Africa's four largest banks, its biggest foothold in East Africa. NCBA was formed in 2019 through the merger of NIC Group and Commercial Bank of Africa, the lender long associated with the Kenyatta and Ndegwa families. It operates in Kenya, Uganda, Tanzania, Rwanda and Ivory Coast, and keeps its name, management and Nairobi headquarters under its new owner.
Figures were converted at 129.9 shillings and R16.6 to the dollar.
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