Nice!
"City Trust shareholders will see their stake in the bank grow to 7.3 per cent from the current 7.28 per cent." So a little bonus too for CTL shareholders.

"At Sh31 billion, the promoters of the transaction say I&M Bank is undervalued on grounds that City Trust shares are trading at discount."

"City Trust had a market value of Sh2.2 billion Tuesday compared to the bank’s valuation of about Sh40 billion."

@vvs. I have to hand it to the contributers of this thread. You guys were spot on, from way back 2011. Down to the split, down to name change to I&M holdings.when it lists at 80 bob after split after elections as I&M holdings. What'll happen

After all the dust has settled, I hope I&M does not change from and Excellent bank to a great business!

VVS, what would be the return of those who had the minimum 20m to invest in the I&M private placement?

City Trust is the biggest gainer (by a long shot) at the NSE over the period (up 167% since 19th November 2010 - date of I&M private placement)

I was tempted by this counter, until i realized it was overvalued. Heck it will still rally, but for how long will the implied premium cushion you. City trust at 200, would have been a P/B of 1. Thats now a pipe dream. those that bought < 300 got a good deal.

I expect it to rally to 500 before share suspension on march 5( co-incidence), so split to be at 100, then upon listing, a rally to 120.00 is on the cards.
when one predicts a stock it proves them wrong, but, just putting it out there

check out SIB'S summary

Key figures summary


New city trust shares
363,722,034
Acquisition stake in I&M
92.72%
City Trusts' pre-swap holding in I&M
7.28%
Share swap exchange ratio (City Trust:I&M)
13.62x
I&M's average OTC VWAP in 2012
KES 1,085.71
I&M's Fair value range as used in SWAP
KES 1,362.70 - KES 1,431.80
Implied PB range based on I&M's fair value (3Q12 NAV)
2.37x - 2.49x
Total City Trust shares post SWAP and spilt
392,362,039
Dilution (City Trust shareholders)
92.7%
Pre SWAP FY11 NAV (City Trust) - KES
9.75
Post SWAP implied FY11 NAV (I&M Holdings)- KES
37.27
Source: Standard Investment Bank Research

Regulatory filings show that I&M Bank directors Sarit Shah will own shares worth Sh1.1 billion and Sachit Shah
shares worth Sh1.09 billion based on their shareholding and current trading price of City Trust shares.
This will see them join the directors’ billionaire club that includes businessman Chris
Kirubi ( Centum Investment), Pradeep Paunrana (Athi River
Mining), James Mwangi
(Equity Bank), Jimnah Mbaru (Britam) and Scangroup’s Bharat Thakrar.
http://www.businessdaily.../-/27lh4uz/-/index.html

Interesting...

1) DEG/Proparco sold shares to existing shareholders as a way of exiting 'early' instead of the 2-year lock in period. This shows 'confidence' by the current Kenyan shareholders. I like firms where directors & their families/firms have ownership.

2) The 2 directors have substantial shares and are locked in too. That's is very good since it is similar to James Mwangi & Equity. Tuko Pamoja unlike Naikuni & KQ.

My back of the envelope calcs...indicated I&M at 1,400 is trading at 20% premium P/B multiple to KCB at 2.4x 2011 books. I thought this is quite onerous given KCB has rallied 33. I&M should ideally trade at a 15% -20% illiquidity discount to KCB. Justifying I&M's 20% premium is indirectly suggesting that KCB has at least a 20% upside (kshs 39/share TP). Between the 2 banks I would fancy KCB growing earnings faster and with a higher payout. Inferring from I&M, City Trust at 300 bob is correctly valued. The rallies beyond these prices would have to be driven by fantasy sentiment!

Shareholder approval and co operation is key for the conclusion of this deal!

www.businessdailyafrica....532/-/g3r85/-/index.html