The merger between stockbrokers ApexAfrica Capital and AIB has moved a step closer with the firms reporting they have received regulatory approvals for the tie-up.
They are targeting end-month for the conclusion of the merger, which will see ApexAfrica client accounts migrated to AIB, which will be the operating company for the new entity.
The deal has been fronted by Mauritian-owned financial services firm AXYS Group, which expanded into Kenya by acquiring ApexAfrica Capital in 2015. It will see the two merge stock brokerage, bond trading, research and corporate finance businesses under a joint venture company which will form part of AXYS Group.
“We have received the approval from the relevant authorities for the merger of the two entities, and we are now in the process of actively bringing them together, under the name of AIB-AXYS Africa Ltd,” ApexAfrica said in a letter to clients.
“There will be a migration of all ApexAfrica Capital accounts to AIB as AIB will be the operating company for the new entity. The target date for the migration of all accounts is June 30, 2020.”
The deal was first announced in February, with both businesses continuing to operate independently pending regulatory approvals for the merger.
The two firms are keen on controlling a larger share of trading and corporate advisory deals on the Nairobi bourse, which is largely driven by foreign investors who account for more than 60 percent of traded turnover.