Nairobi, Jan. 25 -- NCBA Group investors who take up shares of South African lender Nedbank in its cash-and-stock swap buyout offer will face a higher tax charge on dividends and risk of foreign currency losses when repatriating their earnings from Johannesburg.

Nedbank announced its tender offer for a 66 percent stake in NCBA last Wednesday, proposing to pay for 80 percent of the offered shares through a stock swap and the remaining 20 percent in cash at a rate of Sh2,100 for every 100 shares.

The swap component will see the Kenyan bank's shareholders receive 4.02994 Nedbank shares for every 100 NCBA shares they hold, although those whose holdings are not large enough to secure them at least 200 Nedbank shares will be paid fully in cas...