NSE lifts suspension of NCBA shares ahead of Nedbank's 66% acquisition

The Nairobi Securities Exchange (NSE) has lifted the suspension of trading in NCBA Group Plc shares, paving the way for a temporary trading halt to facilitate Nedbank Group Limited's acquisition of approximately 66% of the Kenyan lender.

In a market notice issued on Tuesday, the NSE said the suspension, which took effect at the close of trading on Wednesday, October 21, would be lifted on Tuesday.

However, trading in NCBA shares will remain temporarily halted on November 3 to allow the execution of a block trade through the exchange's Block Trade Board.

The transaction will facilitate Nedbank's acquisition of approximately 66% of NCBA's issued ordinary shares, marking a significant development in the ownership structure of one of Kenya's major banking groups.

The NSE said the temporary halt was necessary to ensure the transaction was completed in an orderly manner and that the settlement process proceeded without disruption.

"Following the lifting of the suspension, trading in NCBA Group Plc shares will be temporarily halted on Tuesday, 3 November 2026, to facilitate the execution of a block trade through the NSE Block Trade Board, pursuant to the acquisition by Nedbank Group Limited of approximately 66% of the issued ordinary shares of NCBA Group Plc," the exchange said.

The notice added that trading would resume once the block trade process had been completed.

The initial suspension of NCBA shares began on October 21, with the NSE subsequently announcing the lifting of the restriction and the temporary halt to accommodate the transaction.

A block trade involves the execution of a large volume of shares as a single transaction or through an agreed trading arrangement, allowing substantial shareholding transfers to take place through the securities exchange.

In this case, the NSE Block Trade Board will provide the platform for executing the acquisition involving Nedbank and NCBA.

The temporary halt is intended to facilitate the orderly transfer of the shares and settlement of the transaction before ordinary trading resumes.

The exchange did not specify the exact time when trading would resume, saying it would happen upon completion of the block trade process.

Investors and other market participants have therefore been advised to take note of the temporary trading arrangements as the transaction progresses.

Nedbank Group Limited's planned acquisition of approximately 66% of NCBA Group represents a major ownership transaction involving the Kenyan banking group.

NCBA is among the financial institutions operating in Kenya's banking sector, with interests spanning corporate and retail banking, digital financial services and regional operations.

The acquisition is expected to give Nedbank a controlling stake in the group once the transaction is completed.

The NSE notice, however, focused on the trading arrangements required to execute the share transfer and did not provide further details on the financial value of the block trade or the transaction's completion timetable.

The exchange said the arrangements were designed to ensure an orderly execution and settlement process while maintaining the integrity of the securities market.

Temporary suspension of trading is a mechanism securities exchanges use when major transactions require specific arrangements to facilitate share transfers.

Such measures are intended to ensure that large transactions are executed through established market procedures before ordinary trading activity resumes.

The NSE has asked investors and market participants to take note of the revised trading arrangements for NCBA Group shares.

The exchange said trading would resume after the block trade had been completed, although it did not announce a specific resumption time.