A NIC bank branch and CBA Group Managing Director Isaac Awuondo.
Commercial Bank of Africa (CBA) and NIC Group have confirmed their
merger plan FILE PHOTO | NMG
Summary
- CBA shareholders will be issued with shares amounting to a 53 per cent stake in the merged institutions, effectively making the deal a reverse takeover of NIC.
- NIC’s existing shareholders will hold a 47 per cent equity in the combined operation.
- The deal values each NIC share at about Sh43.3, representing a 48.7 premium to the bank’s Wednesday’s closing price of Sh29.1.
Commercial Bank of Africa (CBA) and NIC Group have confirmed
their merger plan whose completion will see the unified banks listed on
the Nairobi Securities Exchange (NSE)
CBA
shareholders will be issued with shares amounting to a 53 per cent stake
in the merged institutions, effectively making the deal a reverse
takeover of NIC.
NIC’s existing shareholders will hold a 47 per cent equity in the combined operation.
The deal is currently valued at Sh65 billion – being the book
value of the two institutions based on numbers published in the
September quarter.
“Further to the cautionary
announcement issued by NIC Group on December 6, 2018, the directors of
NIC Group and, its wholly owned subsidiary, NIC Bank are pleased to
announce that NIC Group and NIC Bank have agreed to enter into a merger
with CBA,” NIC said in a statement.
The deal values each NIC share at about Sh43.3, representing a 48.7 premium to the bank’s Wednesday’s closing price of Sh29.1.
It is, however, a discount of nearly 10 per cent to NIC’s book value of Sh48.1.
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