$130M worth? whats a baby bank!

One is a bank, the other an investment company.i believe they are related companies by shareholding and common director. Other than being a merger of mangoes and oranges, i tnink it can only serve two purposes:

1.shoring up statutory ratios for I&M. CT is asset rich.

2. Shortcut listing by the Bank on the nse. City trust will acquire I&M then rebrand ala cfc and stanbic.

My 2 cents.

@the deal, I&M Bank has a Net Book Value of over KES 13B. Check with your source again and report to us the reliability of the merger info

3Q 2011 Results for I&M Bank are impressive especially the growth as a Regional Bank. Huge increase in the Balance Sheet.

Profits up 48% over 3Q 2010 which is very good compared to its peers.

Has anyone seen the Notice for AGM of City Trust? I think a bonus/split is going to be done as City Trust 'acquires' I&M Bank. Pity no shares on offer today.

CITY TRUST LIMITED
CAUTIONARY ANNOUNCEMENT
Reference is made to the cautionary announcement dated 30th September 2011, and
published on 3rd October 2011 for a potential transaction by City Trust Limited (City
Trust). The Directors of City Trust wish to update its shareholders and the public on the
status of this transaction.
The current status of the transaction is as follows:
• The bank which is the Party to the transaction is I&M Bank Limited (I&M Bank).
• Negotiations on the principal terms of the transaction between the parties have
been concluded, whereby the shareholders in I&M Bank will exchange their shares
in I&M Bank for shares in City Trust.
• City Trust and I&M Bank have obtained all necessary regulatory approvals and
exemptions:
i) Applicable approvals from the Capital Markets Authority;
ii) Applicable approval of the Competition Authority of Kenya;
iii) Applicable exemptions from the Central Bank of Kenya, to be gazetted following
shareholder approvals.
• Completion of the transaction is subject to receiving the approval of the shareholders
of City Trust and the shareholders of I&M Bank.
• Following completion, City Trust will become the holding company of I&M Bank. It
should be noted that there will be no change in the operations of I&M Bank and it
will continue with its banking business.
The detailed information relating to the transaction is contained in a Shareholders’
Circular (The Circular). The Circular shall be made available from January 21, 2013
and will be mailed to all those shareholders whose names appear on the register as at
January 15, 2013. The Circular will also be available from licensed investment banks
and stockbrokers. All shareholders of City Trust may seek advice from independent
advisers, stock brokers or investment banks if required.
The proposed transaction may have a material effect on the value of the shares of City
Trust. Accordingly, shareholders are advised to exercise caution when dealing in the
shares of the City Trust.
By order of the Board
Nairobi
24th December 2012

Wow! @BGL is faster than the NSE in posting information! Nothing on the NSE website. Where did you see it published?

390. Low volumes but it doesn't trade much anyway. More information forthcoming in Jan 2013.

What is the ratio of the offer of shares to I&M shareholders.
What is the special dividend, if any, for the 'old' shareholders.
City Trust will be the 'Holding Company' so will other assets/firms be purchased under the umbrella?
I&M Bank results for FY 2012 including consolidation of the 'new' Rwanda subsidiary.

I&M Bank offered shares to ESOP in year 2011 at KES 935 per share. (EPS KES 117.72, NBV KES 507.48, P/E 7.94X, P/B 1.84X). City Trust aint getting the shares any cheaper than that.

City Trust shares are going for KES 390 (EPS KES 8.45, NBV KES 62.86, P/E 46.15X, P/B 6.20X). I doubt whether I&M will getting City Trust shares at such an expensive level.

It's an investment firm. It doesn't need employees but can outsource everything. The Board makes the investment decisions. Berkshire Hathaway has 5.5 employees yet has a portfolio running into billions. Of US Dollars.

Still has no website #Weird Company