17th April 2019 …..NIC Group PLC (“NIC”) is pleased to announce that at an Annual General Meeting held on Wednesday, 17th April 2019, its shareholders overwhelmingly approved the merger with Commercial Bank of Africa Limited (“CBA”).
The approval allows NIC and CBA to merge their operations and amalgamate the shareholding through which the shareholders of CBA will become 53 percent shareholders of NIC.
The transaction is still subject to the approval of the relevant regulatory authorities including Central Bank of Kenya, Capital Markets Authority and Competition Authority. Additional approvals will be required from the regulators in other countries where NIC and CBA operate. It is expected that the process will be concluded in the third quarter of 2019.
“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 endorsement paves the way for completion of the merger that will deliver significant benefits to the Group stakeholders,” said NIC’s Chairman, James Ndegwa.
As part of the merger, it is envisaged that the name of the merged group of companies (including of NIC and the banks within the merged group) will be changed and a new brand will be adopted and rolled out in due course. NIC shareholders also approved a special resolution to allow the board to decide on a new name and brand.
“Whilst a new name is yet to be selected, both NIC and CBA are jointly working with external brand consultants to identify a name that will reflect the identity, values and aspirations of the new merged entity,” said Ndegwa.
CBA shareholders have already approved the merger during their Annual General Meeting held on Tuesday, 16th April 2019. The combined bank will be amongst the largest financial institutions in the East Africa region. With over 41 million customers, the combined entity would be the largest bank in Africa by customer numbers.
ABOUT NIC Group
NIC Group was incorporated in Kenya in 1959 and was amongst the first non-bank financial institutions to provide hire purchase and installment credit finance facilities in Kenya. It is currently quoted on the Nairobi Securities Exchange with approximately 26,000 shareholders. Its success over the years can be seen in the rapid growth of the Group’s balance sheet and the expansion of its branch network across the region with 44 branches in Kenya, 5 branches in Tanzania and 3 branches in Uganda. The Group has also established Strategic Business Units that facilitate the provision of a complete suite of financial products and services. These are NIC Capital (Investment Bank); NIC Securities (Stock Brokerage); NIC Insurance Agents (Bancassurance); NIC Leasing LLP and NIC Ventures.