Nedbank has cleared a major regulatory hurdle in its plan to take a controlling stake in NCBA Group.
The bank has received approval from the Capital Markets Authority (CMA), exempting it from the requirement to make a mandatory takeover offer to all shareholders.
Normally, when an investor crosses a certain ownership threshold in a listed company, they must offer to buy out the remaining shareholders.
This exemption removes that obligation, smoothing the path for the deal.
Also Read: NCBA Acquisition Exposes Nedbank to Intrinsic Credit Risk than S.A, Says Moody’s
Nedbank is seeking to acquire up to 66.6 percent of NCBA Group, and the latest development boosts the chances of the transaction going through.
At the same time, shareholder backing has grown stronger.
Investors representing 77.54 percent of NCBA’s shares have now given irrevocable undertakings to support the deal.
In simple terms, more than three-quarters of shareholders have formally committed to sell or back the transaction, increasing confidence that it will succeed once the remaining conditions are met.
