The NIC Group and Commercial Bank of Africa have announced that they are engaged in talks regarding a potential merger of the two financial institutions.
The lenders on Thursday said they are eyeing “successful conclusion” of discussions on the merger and obtaining relevant approvals from shareholders of the two entities and regulatory authorities.
“The boards believe that combining the business of two highly profitable entities would create enhanced capacity through capital consolidation and strong liquidity to capture strategic growth opportunities,” they said in a joint statement.
Commercial Bank of Africa (CBA) is majority-owned by the Kenyatta family while the Nairobi Securities Exchange- listed NIC Group is partly owned by the billionaire businessman James Ndegwa’s family.
If successful, the planned merger of the midsized NIC Bank #ticker:NIC and the tier one CBA Bank would create one of the largest financial services groups in the region.
“It is the view of the two boards that the potential merger would bring together the best in class retail and corporate banks with strong potential for growth in all aspects of banking and wealth management,” they said.
“A combined entity would create a complementary base of over 38 million customers, a strong digital proposition and a robust corporate and asset finance offering.”
The NSE-listed NIC consequently issued a cautionary trading statement following the announcement.
“This transaction, if successfully concluded, may have a material effect on the price of the company’s securities,” it noted. NIC’s stock stood at Sh22.65 per share by close of Thursday, 0.67 per cent, up from the previous day’s Sh 22.50 per share.
“Accordingly, shareholders, bondholders and the investing public are advised to exercise caution when dealing in the company’s securities.”
The two lenders said a successful merger would allow it to “invest in future growth and in new technology to create enhanced offerings and wider services to its customers, as well as deliver deeper financial inclusion while generating attractive returns to shareholders.”
“A combined larger group would provide new and greater opportunities for employee development, advancement and growth,” they said.
“The combined group would be strongly placed to play a bigger and more significant role in the banking sector and the economies of Kenya, the region and beyond.”
French Embassy Grants 2023 – Funds for NGOs
AUCTIONEER LOSES BID TO STOP HIS SENTENCING
Khaligraph Jones celebrates Femi One on AFRIMMA win
M-Pesa hardens Africa grip with Sh43.3 trillion deals in 12 months
Kisumu phones saga lands at National Police Commission – Weekly Citizen
Panic in Energy parastatals as Chirchir makes comeback – Weekly Citizen
Let’s discuss urgently whether to embrace or reject GMO foods
DTB recruits 100 University Students for Job Shadowing Program
Government to explore opportunities for Kenyans abroad, Ruto says
Consolidate Bank settles on Sam Muturi as CEO – Kenyan Business Feed
Samsung set to launch ‘Self Repair Assistant’ app for DIY fans
Justus Nyang’aya resigns as commissioner of IEBC
KRA loses bid to overturn minimum tax nullification
Why I have resigned from IEBC
Senegal MP slaps female lawmaker, sets off brawl in parliament
IEBC Commissioner Justus Nyang’aya of Cherera 4 Resigns
Life lessons from the football bonanza in Qatar World Cup
12-2022 – Last World cup group matches, Which World cup games will KBC air today
Hottest bachelors of 2022 – Ghafla! Kenya
NOC-k awards junior golfer Kiragu Olympic scholarship
Business News3 days ago
Call for use of technology to combat cattle rustling
Columns And Opinions7 days ago
To correct ills of Jubilee regime, Ruto should invest in counties
Tech2 days ago
Here’s the TECNO Phantom X2 Pro in photos, plus specifications
Sports6 days ago
Messi magic reignites Argentina, France into World Cup last 16
General News5 days ago
The News Brief: Fireworks as Raila calls anti-Ruto meetings
Business News2 days ago
Everything You Need To Know
Columns And Opinions3 days ago
Vipingo Safari Tour enters final round with trio tied at the top
Tech2 days ago
Spotify Kenya Wrapped; Top Streamed Songs and Artistes 2022