The Commercial Bank of Africa (CBA) and National Industrial Credit Bank (NIC) merger is expected to be completed by September after requisite approvals. The announcement saw NIC shares at the Nairobi Securities Exchange hit a high of Sh36.6 from Sh29.1, a 24.74 per cent rise. “Ultimately, the shareholders of CBA will exchange their shares in CBA for new shares in NIC Group, which will be the holding company of the merged businesses,” CBA managing director Issac Awuondo said. This means the 34 shareholders of CBA will own 53 per cent of the merged business with NIC Bank while NIC shareholders will own 47 per cent. “This transaction, if successfully concluded, may have a material effect on the price of NIC Group’s and NIC Bank’s securities,” Gachora said.

Source: The Star January 31, 2019 20:26 UTC