An announcement by CBA Group has made it known that is the final stages of the merger with National Industrial Credit (NIC) bank. The bank added that its shareholders have approved of the union with the listed institution during the company’s Annual General Meeting (AGM) held on 16th April 2019. Prior to this, NIC had received acceptance of the offer from 29 of the 34 CBA Shareholders holding an aggregate 99.07% of the issued shares in CBA.
In a notice issued by the bank, the two financial companies have so far met the conditions on the Merger Agreement document and acquired the regulatory approval needed to proceed.
Directors of NIC Bank and CBA group, are already working on the final steps in the merger process which also include preparation and execution of administrative agreements. In addition, the officials are putting together important documents such as Share Acquisition Agreements, Business and Asset Transfer Agreements, Amalgamation Agreements, and other ancillary documents. Lastly, the directors aim to get the necessary approvals and exemptions from the different regulatory bodies, as required by the law.
National Industrial Credit (NIC) Group has also urged its investors to approve the merger highlighting the very many benefits that will emerge from the union. The group’s shareholders are expected to give their approval during the company’s own Annual General Meeting (AGM).
All the conditions for the mergers to be implemented, are expected to be fulfilled by 30th of June 2019.
CBA group cautioned investors to be prudent when dealing in the company’s securities due to the significant impact of the merger on the value of CBA.
NIC has stated that following the merger, some of its Directors will resign and new Directors, including representatives from the existing Board of CBA, will be appointed to represent the new establishment.
The new establishment, will have a new brand name which will be announced and adopted in the coming months.
In a circular notice issued out, it was indicated thar “The Management of both NIC and CBA are jointly working with external brand consultants to identify a name/brand that will reflect the identity, values, and aspirations of the newly merged entity. This significant workstream remains ongoing, and it is expected that a new name will be selected in the coming months,”.
There is also a rumoured merger between National Bank of Kenya and Kenya Commercial Bank (KCB). As a result, the shares of both the KCB group and National Bank of Kenya, have been suspended from trading at the Nairobi Securities Exchange (NSE) after information on their potential merger surfaced.
It is also said that KCB group is planning the acquisition of assets owned by the troubled National Bank of Kenya which recorded a 98 percent drop in its net earnings in 2018.
The Nairobi Securities Exchange (NSE) in line with the Capital Markets Regulations, has suspended the two banking stocks as they wait for more information to be released to the general public.
It is definitely starting to look like the season of Mergers.
