South African financial services group Nedbank Group Limited has announced plans to expand its presence in East Africa by acquiring a 66 per cent controlling stake in NCBA Group PLC, one of the region’s leading banking institutions.

The announcement follows NCBA’s disclosure to the Nairobi Securities Exchange (NSE) that it had received a Strategic Investment Proposal and Notice of Intention (NOI) from Nedbank to acquire approximately two-thirds of its issued ordinary shares through a tender offer to existing shareholders.

If the tender offer is successfully completed and all regulatory approvals are obtained, Nedbank would gain effective control of NCBA, making the Kenyan-listed lender a subsidiary of the South African banking group. The remaining 34 per cent of NCBA’s shares would continue trading on the NSE, ensuring the Group retains its public listing.

The transaction is valued at approximately 1.4 times NCBA’s book value, with an estimated deal size of R13.9 billion (around USD 856 million). Under the proposed structure, shareholders who participate in the tender offer would receive 20 per cent of the consideration in cash and 80 per cent in newly issued Nedbank ordinary shares, listed on the Johannesburg Stock Exchange (JSE).

NCBA operates across Kenya, Uganda, Tanzania, Rwanda, Ghana and Côte d’Ivoire, offering corporate, retail, and digital banking services. Its Ugandan operations are part of NCBA’s existing East African footprint, giving Nedbank indirect exposure to the Ugandan market through the acquisition.

Nedbank, headquartered in South Africa, currently maintains a representative office in East Africa. The acquisition would provide immediate scale and operational presence in multiple high-growth African markets without the need for establishing separate branch operations.

NCBA Group Managing Director John Gachora said the partnership would accelerate the bank’s regional growth. “Nedbank is an ideal partner for our growth in the East Africa region. Their strong balance sheet will help us scale in our current markets as well as exploring the investment proposition that the DRC and Ethiopia have to offer,” Gachora said.

Nedbank Chief Executive Officer Jason Quinn added: “We have a strategic objective to grow and diversify outside of our core Southern Africa market, and we identified East Africa as a key growth region. We are therefore excited to partner with a strong and leading financial services firm such as NCBA to deliver on our growth ambitions.”

The two institutions said the transaction is expected to generate strategic and operational synergies. Nedbank brings capital strength and international banking expertise, while NCBA contributes established market knowledge across East Africa, including Uganda.

NCBA has also indicated that its brand, governance structures, operating model, and management team are expected to be preserved after the acquisition.

The proposed transaction remains subject to shareholder participation in the tender offer and approvals from relevant regulatory authorities across the jurisdictions in which the two banking groups operate.