Nairobi, Kenya
I&M Holdings has officially listed its new shares at the Nairobi Securities Exchange after a successful conclusion of the merger deal between I&M Bank with investment company, City Trust, through a share swap.
The ceremony was presided over by Central Bank of Kenya Deputy Governor Dr Haron Sirima and Nairobi Governor Dr Evans Kidero. Speaking at the ceremony to mark the commencement of the trading, the Company Chairman Daniel Ndonye said the merger process now opens up to the Group a myriad of opportunities as it beats a new growth path.
“The success of I&M Bank’s merger with City Trust has opened a new chapter in the growth and expansion of our business in the region which comes as good news to our shareholders. It is now much easier for the shareholders of I&M Bank to trade in their shares at the Nairobi Securities Exchange and at the same time unlock the value of shares held by City Trust investors thus boosting the liquidity of these shares,” said Mr Ndonye. “The listing of the Bank also makes it easier for Kenyans to invest in this home-grown institution and share in its success.”
The merger which concluded early June resulted in set up of a holding company, I&M Holdings Limited, in a transaction that enabled I&M Bank’s shareholders to exchange their shares for those of City Trust in a reverse takeover.
“We are excited about this transaction which has enabled the shareholders of the Bank to list on the NSE thus providing liquidity for our institutional, corporate and individual shareholders. The listing also provides us with the platform to raise additional capital in the future to facilitate the achievement of our long term growth and expansion strategy and to improve on our capacities to successfully manage the growth we have achieved in the last few years,” said I&M Bank’s Executive Director Sarit Raja-shah.
Dr Sirima noted that the I&M Bank transaction had been a learning curve for the regulator, who is in the process of undertaking changes in law to allow for the set-up of non-operating holding companies for banks.“The new law is still in draft form, so this transaction has given the Central Bank of Kenya a good opportunity to test the law and note what may need to be changed and/or enhanced,” said Dr Sirima.
Mr. Eddy Njoroge, the Chairman of Nairobi Securities Exchange, noted that,” This is truly a monumental occasion as it is the first reverse takeover that has been witnessed in our capital markets, where a private company’s shareholders exchange their shares for those of a public company , making the non-listed company a publicly-traded one. It is also a unique listing as I&M Holdings has used the reverse takeover of City Trust which was listed on AIMS to migrate the new firm to MIMS. The NSE congratulates I&M Holdings for successfully listing through this avenue and urges other organisations to take up this opportunity to list on the bourse as it is a cost effective avenue for listed and non-listed entities to raise funds.”
Mr Mathur, the Chief Executive of I&M, said that the bank’s main focus is now turned on customer service and product innovation to enhance on it’s competitive edge. “The new growth path we have taken will give our network capacity to offer quality and efficient service to our customers as well as providing more innovative technology-driven products to our clients,” said Mr. Mathur.
Leave a comment