Michael

NCBA confirmed that it has received an offer from Nedbank Group Limited to acquire 66% stake of NCBA (approximately 1.09B NCBA shares) from shareholders through a tender offer. The planned acquisition values NCBA at a multiple of 1.4x Book Value. Let's break down the transaction....🧵 Under the proposed payment structure, for every 100 NCBA shares, NCBA shareholders who participate in the tender offer will receive 20% of the consideration in cash (KES2100) and the remaining 80% in Nedbank ordinary shares (equivalent to 4.02994 Nedbank shares) listed on the Johannesburg Stock Exchange (JSE). The Nedbank shares shall be issued at a price of ZAR 250.00 per Nedbank share using a KES/ZAR spot exchange rate of 7.7143 implying value of KES98.72 per NCBA share. Using Nedbank’s current share price of approximately ZAR 273, the implied value of the stock-plus-cash consideration is about KES105 per NCBA share, which is above the implied offer price of KES98.72 per share. NCBA Shareholders who accept the offer and would receive less than 200 Nedbank Shares (equivalent to less than 5,000 NCBA shares) shall be paid full consideration in cash only. In such cases the payment per 100 NCBA shall be deemed to be KES 10,500 (equivalent to about KES105 per share). In addition to receiving the Offer consideration, NCBA Shareholders who accept the offer will receive the economic benefit of either an NCBA dividend or a Nedbank dividend relating to the same financial period, but not both. In FY' 2024, NCBA paid a total dividend of KES5.50 (equivalent to a 41.4% pay out) while Nedbank Group paid a total dividend of ZAR20.75 (equivalent to a 57% payout). If the transaction is completed Nedbank Group will acquire a 66% majority stake, NCBA will become a subsidiary of Nedbank with the remaining 34% of issued shares remaining listed on NSE. NCBA closed at 98.25 today. We expect the share price to rally to KES105 per share following the confirmation by NCBA that it has received an offer from Nedbank Group Limited to acquire a 66% stake in NCBA.

A girl was murdered in a horrific way, and instead of dragging the killer and condemning the evil act, you’re attacking the victim and scrambling to invent excuses so she fits your twisted idea of a “perfect victim.” Shame on you and the rotten mindset that raised you.