MERGER

NBK says case challenging its take over premature

In Summary

• NBK made the remarks in court in reply to a case filed by two Kenyans seeking suspension of its acquisition by KCB group.

• The planned share swap follows offer by KCB on April 18 to acquire 100 per cent shares of NBK by way of share swap of ten ordinary shares of NBK for one share of KCB.

The National Bank of Kenya along Harambee avenue
The National Bank of Kenya along Harambee avenue
Image: FILE

The National Bank of Kenya has opposed case challenging its take over by KCB group saying it is premature because the process is yet to be approved by competition authority and urged court to dismiss the case.

Although take over notice is under the law indicative of intent the process of take over itself commences with the service  of the take over offer which is yet to be made, the bank said.

The bank further says told the court that it is not subject to oversight by public investment committee of parliament and under the law its books cannot be audited by the auditor general because it is not funded from public or state corporation.

 

“The 1st respondent (NBK) is neither subject to the oversight by the public investment committee of parliament nor has it neglected service of summons from the same as falsely claimed," said the bank in its defense.

Under the law the auditor general is given powers to audit government, state corporations and county governments and as such NBK does not fall under those categories.

NBK made the remarks in court in reply to a case filed by two Kenyans seeking suspension of its acquisition by KCB group on grounds that there was no public participation.

 According to the two, Evans Aseto and John Kiptoo given the fact that the National Treasury and National Social Security Fund have up to 50 per cent of shareholding in NBK its transfer ought to be subjected to public participation.

The planned share swap follows offer by KCB on April 18 to acquire 100 per cent shares of NBK by way of share swap of ten ordinary shares of NBK for one shares of KCB.

KCB shareholders have already approved the deal. The two wanted the books of NBK be audited and information on take over be made available to them.

But yesterday NBK assured the court that the process of take over will be done in accordance to the law.

The parties in the case will come for hearing on June 26 and in the meantime there is no order stopping the take over from taking place.