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Potential merger NIC + CBA
Rank: Member Joined: 5/2/2018 Posts: 267
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sparkly wrote:Superprime1 wrote:Ericsson wrote:sparkly wrote:[quote=Superprime1]NIC Group will be the holding company of the merged businesses. Merger to be consummated through share swap, business and asset transfer, and share acquisitions in relation to various constituent group companies of NIC Group and CBA Group.
CBA will technically reverse-list.
CBA shareholders will own 53% of the issued shares in NIC Group, which will remain listed. Link? https://twitter.com/hashtag/Merger2019?src=hash[/quote] Looks a good deal by and large, so far. Excellent deal. Not far from my prediction of CBA:NIC 60%:40% share swap. The merged entity is likely to be priced at no less than a conservative 45/=, looking at the Q3 numbers...
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Rank: Elder Joined: 12/4/2009 Posts: 10,819 Location: NAIROBI
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Superprime1 wrote:sparkly wrote:Superprime1 wrote:Ericsson wrote:sparkly wrote:[quote=Superprime1]NIC Group will be the holding company of the merged businesses. Merger to be consummated through share swap, business and asset transfer, and share acquisitions in relation to various constituent group companies of NIC Group and CBA Group.
CBA will technically reverse-list.
CBA shareholders will own 53% of the issued shares in NIC Group, which will remain listed. Link? https://twitter.com/hashtag/Merger2019?src=hash[/quote] Looks a good deal by and large, so far. Excellent deal. Not far from my prediction of CBA:NIC 60%:40% share swap. The merged entity is likely to be priced at no less than a conservative 45/=, looking at the Q3 numbers... Depends on what will we the new issued shares of the combined business entity and you might be right going by the below calculation; NIC total issued shares= 639,945,603.00 This is equivalent to 47% of the combined entity. 53% the new shares to be created=721,640,486 Total Issued shares will therefore be 1,361,586,390 Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 2/20/2007 Posts: 767
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Mmmmh, interesting. CBA is reverse listing. What is their exposure to mobile lending and how healthy is that asset class looking like. I wonder if they will publish the data on this. They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
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Rank: Elder Joined: 12/4/2009 Posts: 10,819 Location: NAIROBI
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tom_boy wrote:Mmmmh, interesting. CBA is reverse listing. What is their exposure to mobile lending and how healthy is that asset class looking like. I wonder if they will publish the data on this. Add JBBL (Jamii Bora Bank Limited)which they have also swallowed. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,819 Location: NAIROBI
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https://kenyanwallstreet...mpletion-of-the-merger/
NIC Group Plc has set a relative pricing of Ksh53.7 per share in anticipation for the NIC-CBA merger that is expected to commence its operations in Q3 2019. This is a premium price to the current average trading of Ksh29 at the bourse. The merger announcement on 31 January saw NIC’s share climb by 24.74 per cent to trade at Ksh36.30 by mid-morning compared to Ksh29.10 it was valued at the close of trading hours on 30 January. NIC will create additional shares to accommodate CBA’s shareholders, once it obtains necessary regulatory approvals. John Gachora, NIC’s Group Managing Director, says the merged entity shall continue to trade under NIC Group Plc at the bourse, unless the board of directors feels otherwise. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 7/21/2010 Posts: 6,194 Location: nairobi
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Ericsson wrote:https://kenyanwallstreet.com/nic-cba-shares-to-trade-at-ksh53-7-upon-completion-of-the-merger/
NIC Group Plc has set a relative pricing of Ksh53.7 per share in anticipation for the NIC-CBA merger that is expected to commence its operations in Q3 2019.
This is a premium price to the current average trading of Ksh29 at the bourse. The merger announcement on 31 January saw NIC’s share climb by 24.74 per cent to trade at Ksh36.30 by mid-morning compared to Ksh29.10 it was valued at the close of trading hours on 30 January.
NIC will create additional shares to accommodate CBA’s shareholders, once it obtains necessary regulatory approvals.
John Gachora, NIC’s Group Managing Director, says the merged entity shall continue to trade under NIC Group Plc at the bourse, unless the board of directors feels otherwise. our time to eat truly it's darkest before dawn this thing had fallen to 20 "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Chief Joined: 1/3/2007 Posts: 18,371 Location: Nairobi
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mlennyma wrote:Ericsson wrote:https://kenyanwallstreet.com/nic-cba-shares-to-trade-at-ksh53-7-upon-completion-of-the-merger/
NIC Group Plc has set a relative pricing of Ksh53.7 per share in anticipation for the NIC-CBA merger that is expected to commence its operations in Q3 2019.
This is a premium price to the current average trading of Ksh29 at the bourse. The merger announcement on 31 January saw NIC’s share climb by 24.74 per cent to trade at Ksh36.30 by mid-morning compared to Ksh29.10 it was valued at the close of trading hours on 30 January.
NIC will create additional shares to accommodate CBA’s shareholders, once it obtains necessary regulatory approvals.
John Gachora, NIC’s Group Managing Director, says the merged entity shall continue to trade under NIC Group Plc at the bourse, unless the board of directors feels otherwise. our time to eat truly it's darkest before dawn this thing had fallen to 20 Where are those jamaas who were making fun of my investment in NIC?  I am solidly in the black now.  The 53/- sounds even better but does that include NPLs on NIC's books? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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Quote:Dear CBA Customer, I am pleased to inform you that the Boards of Directors of Commercial Bank of Africa Limited (“CBA”) and NIC Group PLC (“NIC”) have announced that they will recommend the proposed merger of the two banks to their respective shareholders. The merger will create a universal bank that provides the full range of financial products and services to corporate, institutional, SME and personal banking customers, who will benefit from our strong relationship management focus and customer service excellence. As our customer, you remain and continue to be our first priority. Please click here to read the joint press statement, which provides further information. Please note that until the merger becomes effective, the two entities will continue to operate independently and as such, there will be no immediate change to your banking relationship. Kindest Regards. Isaac Awuondo Group Managing Director Joint statememt     If Obiero did it, Who Am I?
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Rank: Member Joined: 2/20/2007 Posts: 767
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Sijui nilie ama nicheke. Avg loan per customer for CBA is sh 2,804 and NIC shs 806,095. Avg deposits is shs 4,660 for CBA and shs 1,016,714 for NIC. This is doubly sad. Despite the force of mpesa and millions of customers, CBA is no better than plain old sme bank NIC. This shows that the economy is in the hands of the smes. Mobile loans ni kuchapa maji kwa karai. To grow the economy, funds must go to smes not to mobile loans. They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
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Rank: Member Joined: 1/1/2011 Posts: 396
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tom_boy wrote:Sijui nilie ama nicheke. Avg loan per customer for CBA is sh 2,804 and NIC shs 806,095. Avg deposits is shs 4,660 for CBA and shs 1,016,714 for NIC.
This is doubly sad. Despite the force of mpesa and millions of customers, CBA is no better than plain old sme bank NIC. This shows that the economy is in the hands of the smes. Mobile loans ni kuchapa maji kwa karai.
To grow the economy, funds must go to smes not to mobile loans. I am coming over to your way of thinking. Without a breakout of the mobile loan portfolio, one cannot complete a comparative analysis let alone check the health of their various portfolios. But with a micro-product like mshwari, both the customer count and average loan per customer numbers are skewed. However, it is apparent that scaling up via mobile lending has not led to an outsized gain in loan figures at CBA. We cannot draw conclusions on profitability of mobile lending from the above presentation though.
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