By Ukumbi Afrika 
Johannesburg— South Africa’s Absa Group has increased its stake in its Kenyan banking subsidiary to roughly 72% after acquiring about 3.5% of the business through a tender offer.
Absa launched the offer in June as part of efforts to increase its holding in Absa Bank Kenya, with the potential to raise its stake to as much as 85%.
The South African lender said it accepted valid tenders from 2, 045 shareholders covering approximately 189 million ordinary shares. The offer had allowed Absa to purchase up to 896 million shares from minority investors.
Absa said it was satisfied with the outcome and did not expect to return to the market to acquire the remaining shares contemplated under the offer.
“We view the decision by shareholders to retain their investment as a positive signal of confidence in Absa Kenya, ” Charles Russon, Absa’s Group Executive for Africa Regions, said.
The transaction comes as South African banks expand their presence across East Africa, seeking to benefit from growing intra-African trade and investment while filling some of the space left by European banks that have scaled back their operations on the continent.
Absa’s increased ownership strengthens its position in Kenya, one of East Africa’s largest and most developed banking markets.
Source: Reuters
Reporting: Anathi Madubela
Editing: Alexander Winning & Mark Potter