The sports category has moved to a new website.

Kenya’s NIC Group PLC and Commercial Bank of Africa have joined forces to become the largest bank in Africa serving over 40 million customers

Kenya’s NIC Group PLC and Commercial Bank of Africa have joined forces to become the largest bank in Africa serving over 40 million customers
  • Through a statement sent to newsrooms, the two entities announced that their respective Boards of Directors have agreed to the merger of NIC and CBA.
  • This latest development comes just days after CBA announced it has made a Sh1.4 billion ($140 million) cash offer to buy out Jamii Bora Bank further expanding Kenyatta family’s business empire.
  • Both the the chairman of NIC, Mr James P M Ndegwa and CBA chairman, Desterio A. Oyatsi, have welcomed the move.

Kenya’s NIC Group PLC and Commercial Bank of Africa have joined forces to become the largest bank in Africa by customers serving over 40 million customers in 5 countries.

Through a statement sent to newsrooms, the two entities announced that their respective Boards of Directors have agreed to the merger of NIC and CBA.

While commenting on the merger the chairman of NIC, Mr James P M Ndegwa said the combined bank will be a very strong financial player in the region.

ADVERTISEMENT

"The combined bank will be a very strong financial player in the region with the ability to drive growth and support Kenya’s ambitious economic agenda and that of its neighbouring territories. 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. It also presents an attractive prospect to our shareholders as the strategic benefits from the merged entity materialise and financial synergies are delivered,” said James Ndegwa.

The merger will be completed upon fulfilment of a certain set of conditions precedent, customary to transactions of this nature, including but not limited to, the parties obtaining applicable shareholder and regulatory approvals, and the parties entering into and completing various transactional agreements to complete the merger.

CBA chairman, Desterio A. Oyatsi, welcomed the move saying the merger will provide the bank with an opportunity to serve over 40 million customers in 5 markets.

“This merger presents us with the opportunity to play a critical role in the economies of the markets we operate in and the foundation to scale our business into other markets within our continent; leveraging our core strengths of innovation which have delivered considerably to our financial inclusion agenda and enabled us to provide access to financial services to over 40 million customers in 5 markets. We are well positioned to use our strong focus on relationship management, customer service and digital delivery to change the face of banking in our markets. These are exciting times indeed, for our staff, our customers and shareholders,” said Desterio A. Oyatsi.

ADVERTISEMENT

This latest development comes just days after CBA announced it has made a Sh1.4 billion ($140 million) cash offer to buy out Jamii Bora Bank further expanding Kenyatta family’s business empire.

The proposed merger will be executed through a share swap, and it is proposed that the 34 shareholders of CBA will exchange their shares in CBA for new shares in NIC, which will be the holding company of the merged businesses and remain a publicly listed company quoted on the Nairobi Securities Exchange.

It is envisioned that the share exchange ratio will be based on a 47:53 relative valuation of NIC and CBA respectively. As such, it is expected that the 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.

ADVERTISEMENT

The proposed merger will create a bank with the financial strength, expertise, and regional reach to support Kenya’s and the regions’ economic growth aspirations such as Kenya’s Big Four Agenda which focuses on food security, affordable housing, manufacturing and universal healthcare.

The combined bank will be amongst the largest financial institutions in the East Africa region with a total asset base in excess of KES 444 Billion and Shareholders’ Equity of KES 65 Billion. It will be the second largest bank in Kenya by customer deposits and third largest by total assets and a true market leader in Corporate Banking, Asset Finance and Digital Banking.

The bank will operate a network of more than 100 branches across five regional economic centres including Nairobi, Kampala, Dar es Salaam, Kigali and Abidjan. Serving over 40 million customers, the combined entity will be the largest bank in Africa by customer numbers.

ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

African countries with the highest divorce rate

African countries with the highest divorce rate

10 African cities with the highest crime index at the start of 2024

10 African cities with the highest crime index at the start of 2024

Machoka at 70: Emotions run high during Citizen TV presenter's birthday [Video]

Machoka at 70: Emotions run high during Citizen TV presenter's birthday [Video]

Diwali 2022: Is Monday a public holiday in Kenya?

Diwali 2022: Is Monday a public holiday in Kenya?

Akothee finally reveals reasons for separating from Omosh 1 month after wedding

Akothee finally reveals reasons for separating from Omosh 1 month after wedding

Man, once a ‘billionaire’, recounts how he lost wealth, now sells his book on streets [Video]

Man, once a ‘billionaire’, recounts how he lost wealth, now sells his book on streets [Video]

Details of Ngina Kenyatta's luxurious restaurant

Details of Ngina Kenyatta's luxurious restaurant

Zero Chills! Jackie Matubia's advice for Milly Chebby amid the unfollow drama

Zero Chills! Jackie Matubia's advice for Milly Chebby amid the unfollow drama

Nigerian royal dignitaries, including four kings and a queen, expected to attend Museveni’s 50th wedding anniversary celebrations

Nigerian royal dignitaries, including four kings and a queen, expected to attend Museveni’s 50th wedding anniversary celebrations

ADVERTISEMENT