CBA, NIC confirm merger plan as unified banks to list on NSE
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
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) #ticker: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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