@VVS, et al. Who are the current directors of City Trust? And why is mr. market valuing City Trust this expensively? Wouldn’t mind the latest annual report

The City Trust shares will be split before the swap then City shareholders get to keep their equivalent of their current stake in I&M Bank in the new holdings company. I&M Bank is a fast growing regional bank...I think City is cheap at the current price.

Disclaimer: My two cents.

The notice said the Documents will be released on 21st Jan 2013. There might be an element of 'splitting' included prior to the 'acquisition'. I would hazard a guess between 4 to 10 so an implied price of 100 (close to its peer DTB) to 40 (close to its peer NIC). BTW, employees were allocated shares in IM& Bank [always good to have employees as shareholders] and DEG/Proparco are among the larger shareholders.

Since the dominant party will be I&M Bank (I&M Bank Kenya, I&M Bank Tanzania), I assume the name of City Trust will eventually be changed to I&M Holdings or something of the sort. See EA Oxygen to BOC, Brooke Bond to Unilever, etc.

If you go to I&M Bank's website, there are other 'group' companies which may become part of the Holding Company in the future e.g. GA Insurance.

Ditto, the stock will be put on the weighing machine that is the nse after the re-organisation.

Like any other firm, you have to look at the details.

I expect a hefty split thanks to the 'high' price of City Trust. And splits seem to generate excitement.

@sparkly, touché. .... are lockup of the anchor shareholders expected in this listing arrangement?

To add to @Sparkly, some of my thoughts:

I like NIC but I also worry about the bank's future growth in a crowded field. It has new operations in Uganda & bought a smallish bank in Tanzania. Except for the ndegwa businesses, does it have sufficient 'large' clients who do cross-border business?

I&M is not in Uganda. Actis sold BCR (Rwanda) to I&M. I understand Actis had 60% of DFCU (listed in Uganda) on the block too. Was it too much for I&M to swallow in one bite? Perhaps after digesting BCR, I&M can bid for DFCU using 'listed' shares as currency. If they are smart about it, go for a cross-listing on the USE & RSE to generate buzz & goodwill.

Tanzania: The growth has been rapid per the Annual Report. http://www.imbank.com/tz/about-us/annual-reports/
Unlike Kenya, Tanzania is underbanked but also a tougher place to do business coz the socialists don't quite get 'loans' need to be repaid. Michael Shirima owns 5% of I&M Bank TZ and he is also the largest shareholder in Precision Air.

Rwanda: I&M bought BCR in 3Q 2012 (per the press releases) so it may take a few months to integrate it fully into the group. Rwandan firms do a lot of business with Kenyans & Tanzanians. I expect increased synergy with Tanzania rather than Kenya. An importer can use Tanga/Dar to import goods then move them to Rwanda. DRC is huge business for Kenyans & Rwandans. 20% owned by Government of Rwanda. I expect a listing of BCR or a cross-listing of I&M/City on the RSE.
http://www.bcr.co.rw/index.php/financial-reports

Mauritius: http://bankone.mu/en/financial_statements.aspx
Rapid growth of the bank in a small economy but Mauritius acts like a financial center bridging India & China to (South, Central & East) Africa. The 'safety' & good governance in Mauritius has encouraged businesses to incorporate there including some subsidiaries/associates of Transcentury & Britam. 50% owned by CIEL of Mauritius.

Kenya: It remains 'king' for I&M but it increasingly contributes a smaller percentage of the profits though 90%+ of absolute profits. Reading the papers, ads & press releases, they are ramping up in Western & Rift Valley. Is it coz of increased demand from clients or expansion into the economically significant counties? [New branches in Kisii, Eldoret & Nakuru]

Rich Today: City Trust firmed 2.56% to close at 400.00 which is a Fresh All Time Closing High. City Trust is the subject of a Reverse Takeover where I&M Bank will essentially list at the Securities Exchange via City Trust. City Trust trades on a PE Ratio of 47.2189 and the Equations around the Reversal of I&M into City Trust will require careful scrutiny because the inherent Bias might be for an expensive Valuation.