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| Cabinet approved the sale of NBK and other public enterprises in the latest round of privatisation. |
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OTHER FINANCIAL NEWS |
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The Kenya Government aims to sell a 51 per cent stake in National Bank of Kenya (NBK) to a strategic investor and 10 per cent to the public, a senior source at the country’s privatisation body says.
But the final outcome depends on discussions between the government and the National Social Security Fund (NSSF), who are the largest shareholders, over the conversion of some preference shares. "The target is 51 per cent for someone who can bring in management experience and also capital, then 10 per cent to go to the public. The public already holds 4 per cent," the source told Reuters. "How the actual percentages play out is a function of how they proceed in terms of restructuring.
It is an issue of how to convert preference shares into ordinary shares. That is the subject of discussions between NSSF and the State. Cabinet approved the sale of NBK and other public enterprises in the latest round of privatisation.
Cabinet approved the sale of NBK and other public enterprises in the latest round of privatisation. Treasury expects to net up Sh6 billion from the sale of some of the assets in its 2009/10 fiscal year.
The Government owns a 22.5 per cent stake in the bank and 48 per cent through NSSF. NBK Managing Director Reuben Marambii said last year he would prefer to sell the bank to a local investor and the public.
Equity has expressed interest in acquiring NBK depending on sale terms. Equity’s CEO James Mwangi says NBK’s large portfolio of government securities would complement Equity’s large retail network.Other likely suitors for NBK are local and foreign banks looking to expand or gain a foothold in the region. — Reuters
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