Home ECONOMY High Court declines to suspend National Bank takeover by KCB

High Court declines to suspend National Bank takeover by KCB

by biasharadigest

The High Court has declined to suspend the takeover of the National Bank of Kenya by the Kenya Commercial Bank (KCB) as it awaits the outcome of a petition filed on Thursday.

The petition is challenging the acquisition of NBK by KCB Group.

In its ruling, the court certified the matter as urgent and directed the matter be heard between the parties. The case will be heard on June 26.

NBK, which remains under the subject of an impending acquisition by KCB, had seen its full year earnings to December 31, 2018 eaten away to a mere Ksh.7 million as restructuring costs and increased loan impairment crippled growth.

The bank had earlier in March issued a precautionary statement warning of a substantial decline in profit.

The proposed acquisition which still awaits shareholder and regulatory approval to include an inquiry by parliament is expected to see NBK operate as a KCB subsidiary in the short run before its incorporation to the acquirer.

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