NAIROBI, Aug 19 – South Africa’s Absa Group has increased its stake in Absa Bank Kenya to about 72% after acquiring approximately 189 million shares from minority shareholders through a tender offer.
Absa said on Wednesday that the transaction increased its holding by roughly 3.5 percentage points. The bank had launched the offer in June as part of a plan to increase its ownership of the Kenyan subsidiary, with the potential to raise its stake to as much as 85%.
The offer ultimately attracted valid tenders from 2,045 shareholders, representing about 189 million ordinary shares. This was significantly below the 896 million shares Absa had offered to purchase from minority investors.
Absa said it was satisfied with the outcome and did not expect to return to the market to acquire the remainder of the shares covered by the offer.
Charles Russon, Absa’s Group Executive for Africa Regions, said the decision by some shareholders to retain their holdings was encouraging for the Kenyan business.
“We … view the decision by shareholders to retain their investment as a positive signal of confidence in Absa Kenya,” Russon said.
The transaction reinforces Absa’s position in Kenya while highlighting the growing strategic importance of East African markets to South African financial institutions. South African banks have increasingly expanded across the region as European lenders have reduced their presence and cross-border trade and investment within Africa have grown.
For Absa, maintaining a majority position in its Kenyan subsidiary provides continued control over one of its key regional operations while allowing minority investors to retain exposure to the bank’s future growth.
The limited take-up of the tender offer also means Absa will retain a substantial minority shareholder base. The group’s decision not to pursue the remaining shares suggests that the current ownership structure provides sufficient strategic control without requiring a further acquisition at this stage.
The move comes as African banking markets continue to attract regional consolidation and investment. Increasing intra-African trade, growing financial services demand and the retreat of some international banks have created opportunities for institutions with established continental networks to expand their market positions.
