The deal is subject to the approval of the Central Bank of Kenya (CBK), Capital Markets Authority and Competition Authority.
Thursday 18, April 2019 BY KUDAKWASHE MUZORIWA
NIC Group shareholders have approved the merger with Commercial Bank of Africa (CBA).
James Ndegwa, the Chairman of NIC Group, said, “I’m delighted that our shareholders share our vision and have overwhelmingly supported this important merger that will create a leading Tier 1 bank.”
The two banks announced the planned merger in January and agreed that NIC Group shareholders would own 47 per cent of the merged entity and the CBA’s shareholders will own the remaining 53 per cent.
CBA said its shareholders had accepted a share swap with NIC Group.
NIC Bank and CBA also require additional approval from the regulators in other countries where they operate, therefore the deal is expected to be concluded in the third quarter of 2019.
In a statement, NIC Group said that as part of the merger, the name of the merged entity will be changed and a new brand will be adopted and rolled out in due course.
The combined bank will be amongst the largest financial institutions in the East Africa region, with over 41 million customers.