NIC Group PLC shareholders overwhelmingly accepted the company’s plan to merge with Commercial Bank of Africa Limited.
According to a statement issued by the directors of CBA group, 29 out of 34 investors in CBA now own 98% of the bank as of 11th March 2019 through a share swap.
“As a result of the Share Exchange Transaction, it is proposed that NIC Group will acquire sole control of CBA and its subsidiaries,” said CBA in a cautionary announcement.
In January, the respective Boards of Directors agreed to the merger of NIC and CBA. “The proposed merger will create a bank with the financial strength, expertise and regional reach to support Kenya’s and the region’s economic growth aspirations,” said the two banks said in a joint statement.
In the deal, then, it was envisioned that “The share exchange ratio will be based on a 47:53 relative valuation of NIC and CBA respectively.”
“It was expected that CBA shareholders will in aggregate own 53% of the then issued shares in NIC, whilst existing NIC shareholders will own 47% of the then issued shares in NIC.”
The combined bank will be among the largest financial institutions in the East African region with a total asset base in excess of Ksh 4444 billion and shareholders equity of Ksh 65 billion.
It will be the second largest bank in Kenya by customer deposits and third largest by total assets and a true market in corporate banking, asset finance and digital banking.