More than 64,000 minority shareholders of Absa Kenya declined an offer by South Africa’s Absa Group to buy part of their shares, limiting the lender’s plan to increase its stake in the bank.
Absa Group purchased 189.38 million shares, equivalent to a 3.49% stake, from 2,045 shareholders after offering Ksh34.50 per share. The transaction achieved only a 21.1% subscription rate.
Analysts attributed the weak uptake to Absa Kenya’s rising share price, which reduced the attractiveness of the offer.
Absa Group, which currently owns about 68.5% of the bank, has indicated it may return with another offer or acquire shares through market purchases.
