Nairobi, June 18 -- South Africa's Absa Group Limited is set to spend Sh30.9 billion to raise its ownership in Absa Bank Kenya to 85 percent from the current 68.5 percent, marking the latest mega deal in the country's banking sector.

The multinational is offering a premium price of Sh34.5 per share to the company's minority investors, underlining its confidence about the lender's future outlook.

The Nairobi Securities Exchange-listed firm has significantly raised its profits and dividend payouts while improving returns on shareholders' funds since it separated from its former ultimate parent firm Barclays Plc in 2020.

Absa Group now intends to buy a total of 895.9 million shares in its local subsidiary in a transaction that will boost ...