South Africa's Nedbank Group formally became the controlling shareholder of NCBA Group on Tuesday after about 1.087 billion NCBA shares were transferred through a block trade on the Nairobi Securities Exchange, a single transaction that pushed the day's equity turnover to roughly Sh107 billion, the largest figure ever recorded at the bourse.

The transfer, executed on the NSE Block Trade Board, hands the Johannesburg-listed lender a 66 per cent stake in Kenya's fourth-largest bank by assets. Business Daily reported that the shares moved on Tuesday lifted equity turnover to Sh107.7 billion, while Business Today put the foreign-led buying on the NCBA counter at about Sh107.2 billion, far above the previous single-day record of Sh42.52 billion set on October 19 when a Dangote-linked firm bought into Kenya Pipeline Company.

How the deal was priced

Nedbank's offer was a hybrid: 80 per cent in new Nedbank shares and 20 per cent in cash. Shareholders who opted for the share swap received 4.02994 Nedbank shares for every 100 NCBA shares, while the cash alternative was priced at up to Sh105 per NCBA share, a premium on where the stock had been trading.

According to Business Daily, Nedbank estimated it would pay about Sh23.23 billion in cash and issue 43.63 million of its own shares to settle the equity option, with the final figures expected to be announced around November 5.

The offer was heavily oversubscribed. Initial acceptances covered 920.65 million shares, or 55.88 per cent of NCBA, before investors tendered a further 395.7 million shares. Nedbank scaled back the excess on a pro-rata basis, rejecting about 228.99 million shares so that its holding stayed at exactly 66 per cent. In total, holders of 79.9 per cent of the bank had offered to sell.

Trading resumes, with volatility expected

NCBA shares had been suspended from trading at the close of business on October 21 to allow the share register to be reconciled and the acquisition implemented, a freeze that also covered NCBA-based futures contracts on the NSE Derivatives Market. The Eastleigh Voice reported that the NSE lifted the suspension on Tuesday, briefly halted the counter again so the block trade could settle in an orderly manner, and then allowed normal trading to resume.

The stock closed 4.2 per cent higher at Sh91.75, up from Sh88, while Nedbank's shares ended the day at 290.8 rand in Johannesburg. Some investors who sold into the offer have already started receiving their cash and Nedbank shares.

Market watchers quoted by Business Today expect sharp swings in the NCBA counter in the coming weeks because the free float available to ordinary investors has shrunk to 34 per cent. The outlet also reported market talk that another South African lender, FirstRand, could be eyeing a Kenyan acquisition, with I&M Bank mentioned as a possible target, although no such deal has been announced.

What changes for NCBA customers and shareholders

NCBA will keep its name, its Nairobi headquarters and its local management team, and it remains listed on the NSE with minority shareholders holding the remaining 34 per cent. But Nedbank now controls the bank's strategy, including decisions on regional expansion, how much profit is retained and the rate at which dividends are paid out. Nedbank expects to consolidate NCBA's results into its own financial statements from the fourth quarter of 2026.

The completion of the deal coincided with the 11th NCBA Economic Forum at the Radisson Blu Hotel in Upper Hill, Nairobi, on Tuesday, where NCBA Group Managing Director John Gachora hosted National Treasury Cabinet Secretary John Mbadi.

The transaction is the biggest foreign takeover of a Kenyan bank in years and gives Nedbank, one of South Africa's big four lenders, a direct foothold in East Africa's largest economy through a bank best known for its M-Shwari and Fuliza mobile lending partnerships with Safaricom.

Photos: Lucy Wanjiru/Nation Media Group (Business Daily); Business Today. Thumbnail design: HAMASTA MEDIA.