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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.

“They may chose to trade under a different name,” he said at the sidelines during the joint press conference at Intercontinental Hotel, Nairobi.

The proposed merger will be executed through a share swap, where the 34 CBA shareholders will exchange their shares for new shares in NIC.

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NIC Group Plc will be the holding company of the merged businesses and remain a publicly listed company quoted on the Nairobi Securities Exchange.

The share exchange ratio will be based on a 47:53 relative valuation of NIC and CBA respectively. This means that CBA shareholders will, in aggregate, own 53 per cent of the then issued shares in NIC, whilst existing NIC shareholders will own 47 per cent of the then issued shares in NIC.

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