The boards of CBA Group and NIC Bank have approved a merger between the two entities, creating one of Africa’s largest banks by customer numbers (40 Million +) with more than 100 branches across the region.

In a briefing, executives of the two banks revealed that the proposed merger would be through a share swap, with the 34 shareholders of CBA exchanging their shares in CBA for new shares in NIC, which will remain listed on the Nairobi Securities Exchange. The envisioned share exchange ratio will be based on a 47:53 relative valuation of NIC and CBA respectively.

The merger is expected to be completed in the second half of 2019 but until then, the two entities will continue to operate independently.


“Should such approvals be obtained, and the requisite conditions precedent be satisfied, the merger will be consummated through share exchange, business and asset transfer and share acquisitions in relation to various constituent group companies of NIC Group and CBA. Ultimately, the shareholders of CBA will exchange their shares in CBA for new shares in NIC Group, which will be the holding company of the merged businesses. NIC Group will remain listed on the Nairobi SecuritiesExchange.” read a joint statement from the two banks.

After such share exchange, the 34 shareholders of CBA will in aggregate own 53% of the then issued shares in NIC Group, whilst existing NIC Group shareholders will own 47% of the then issued shares in NIC Group.”

Earlier in December, the two banks announced talks about a merger to create the country’s third-largest lender by assets in excess of Sh 444 Billion.

So far, NIC Bank’s loan book has been skewed toward asset financing, which contributed a huge chunk of its total loans during the last quarter.