NAIROBI, Kenya, Jan 31 – Commercial Bank of Africa (CBA) shareholders will own 53 per cent of the merged business with NIC Bank while NIC Bank shareholders will own 47 per cent.
Commercial Bank of Africa Managing Director Issac Awuondo said the proposed merger will be executed through a share swap, with the 34 shareholders of CBA exchanging their shares in the Kenyatta family-linked bank for new shares in NIC, which will remain a publicly listed company quoted on the Nairobi Securities Exchange (NSE).
Awuondo said the merger will propel the entity to be the second largest bank in customer base in Kenya and third largest by assets.
The new entity will have 40 million customers across five regional economic centres including Nairobi, Kampala, Dar es Salaam, Kigali and Abidjan making it the largest bank in Africa by customer numbers.
On Asset base, the combined bank will be amongst the largest financial institution in the East African region with an asset base of Sh444 billion about 100 branches and shareholders’ equity of Sh65 billion.
The merger is expected to be completed in the second half of 2019. Until then, the two entities will continue to operate independently.
“No Job cuts expected with the merger, as we are set to focus on growth, no branches expected to be closed,” said NIC Group Managing Director John Gachora.
NIC Chairman James Ndegwa says the combined banks will now have the ability to drive growth and support Kenya’s ambitious; economic agenda.
“Our enhanced capacity through capital and balance sheet consolidation, as well as combined product and service capabilities, will make us the preferred partner to anyone doing business in East Africa and beyond,” Ndegwa added.