NAIROBI, Kenya, Nov 4 – South Africa’s Nedbank Group has completed its acquisition of a 66 percent stake in NCBA Group, bringing the Kenyan lender under its control in a transaction that saw shareholders receive Sh23.23 billion in cash consideration.

The transaction, completed on November 3, involved the transfer of 1.087 billion NCBA shares to Nedbank through an on-market block trade at the Nairobi Securities Exchange (NSE), making NCBA a subsidiary of the South African banking group.

Nedbank paid accepting shareholders Sh23.23 billion ($178.74 million) in cash and issued 43.63 million new Nedbank shares as part of the consideration.

NCBA shareholders had tendered 1.316 billion shares, representing 79.9 percent of the lender’s issued share capital, exceeding the 66 percent Nedbank had sought to acquire.

However, excess applications were scaled down, with Nedbank ultimately acquiring 66 percent of the bank, leaving other shareholders with a combined 34 percent stake.

“Accordingly, the Transaction has been completed and NCBA has become a subsidiary of Nedbank Group,” the lender said in a notice to investors.

The acquisition marks a significant shift in ownership of one of Kenya’s largest banking groups, potentially giving NCBA access to Nedbank’s regional and international banking networks, capital and corporate banking expertise.

As part of the governance changes following the transaction, Nedbank Group Chief Financial Officer Michael Howard Davis and Nedbank Corporate and Investment Banking Chief Executive Anél Bosman have joined NCBA’s board as non-executive directors, effective November 3.

Davis brings more than 28 years of financial services experience, including expertise in treasury, risk management and capital allocation, while Bosman has spent approximately 24 years at Nedbank, holding senior positions across corporate banking, markets and strategy.

NCBA also appointed Esther Wanjiku Kungu as its Group Company Secretary, following her progression through the lender since joining its insurance subsidiary in 2008.

Despite the change in control, NCBA will retain its listing at the NSE, with approximately 34 percent of its shares remaining in public hands.

Trading in the lender’s shares, which had been suspended on October 21 to facilitate reconciliation of the share register and implementation of the transaction, resumed on November 3.

“Following completion of the Transaction, NCBA continues to be listed on the NSE with approximately 34% of its issued shares held by the public,” the bank said.

The completion follows the Capital Markets Authority’s approval of the transaction, which had been declared unconditional on October 21, paving the way for settlement and transfer of ownership.