South Africa's Absa Group Limited has launched a voluntary tender offer to purchase up to 895,989,600 additional ordinary shares in its Nairobi-listed subsidiary, Absa Bank Kenya PLC, at KSh 34.50 (US$0.27) per share. The transaction, valued at KSh 30.91 billion (approximately US$230 million), would increase the Group’s ownership from the current 68.5% to a maximum of 85% upon full acceptance.
This strategic move addresses a long-standing structural misalignment in which Absa Group bears full consolidated risk for the Kenyan operations on its balance sheet while capturing only a proportional share of earnings. The offer underscores the Group’s confidence in Absa Bank Kenya’s growth prospects and its commitment to deepening its presence in one of East Africa’s most important banking markets.
The tender price delivers an attractive premium to minority shareholders — 20.0% above the 30-day volume-weighted average price, 18.9% above the 90-day VWAP, 28.2% above the 180-day VWAP, and 18.1% above the closing VWAP on 17 June 2026. At the offer price, the transaction implies a valuation of about 8.2 times trailing earnings for the year ended 31 December 2025. Absa Group currently holds 3,720,816,000 shares, and full acceptance would bring its total holding to 4,616,805,600 shares.
Absa has emphasised that this is a long-term investment rather than a precursor to delisting. The Group has applied to the Capital Markets Authority for an exemption from mandatory takeover provisions and has committed to keeping Absa Bank Kenya listed on the Nairobi Securities Exchange, while maintaining the public float and current governance arrangements.
On the day the offer was announced (18 June 2026), Absa Bank Kenya shares surged to an all-time high of KSh 33.00 before closing at KSh 29.40. The offer remains subject to regulatory approvals. Subject to those approvals, the tender is provisionally expected to run for 30 business days between 30 June and 11 August 2026.
The development forms part of a wider wave of ownership changes in Kenya’s banking sector, including Nedbank’s ongoing move to acquire a significant stake in NCBA Group. Absa’s existing majority position in the Kenyan lender traces back to 2013, when Barclays Plc spun off its African operations to create the standalone Absa Group.
Bowmans is providing legal advisory support for the transaction.
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