Commercial Bank of Africa (CBA) is on course to merge with NIC Group after the majority of its shareholders approved the share swap deal that was proposed in January.
CBA directors said yesterday that as at end of last Monday, 29 out of 34 shareholders with 98.15 per cent stake of the issued and fully paid up share capital had accepted the deal.
“As a result of the share exchange transaction, it is proposed that NIC Group will acquire sole control of CBA and its subsidiaries,” CBA said in a statement published in the daily newspapers.
The merger, expected to be executed through a share swap, is the first major merger deal in a sector that has continued to witness consolidation in the recent past.
Successful conclusion of the merger could see the combined bank become the third biggest in Kenya by total assets, and the second biggest bank in Kenya by customer deposits, according to South Africa rating agency, Global Credit Ratings (GCR).
No comments:
Post a Comment