The merger between the Bank of Africa (CBA Group) and the NIC Bank seem to be taking shape after the two institutions unveiled a new leadership team.
According to the two banks, CBA Group and NIC Bank, the team is set to become effective after the finalization of the merger deal that is in its final stages.
The merger between the two lenders has been described as one set to shift the banking sector in Kenya as it will create the third largest bank in Kenya in terms of assets.
In the new management, Mr. Isaac Awuondo, the current Managing Director of CBA, will become the Chairman of the new outfit while Mr. John Gachora, the current Group Managing Director of NIC Group will become the Group MD and CEO of the new entity.
The Competition Authority of Kenya (CMA) had given a nod for the merger with the condition that both institutions maintain their employees for at least one year upon fears that the majority of them might be laid off.
“Mr. Isaac Awuondo will continue to provide the day to day leadership of the Digital Business as we develop its long-term strategy while Mr. Gachora will be responsible for the day to day management of the Group’s businesses,” the two banks said in a statement.
Upon the completion of the merger, the new entity will operate more than 66 branches within and without Kenya with 1,872 employees.
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In March 2019, Directors of Commercial Bank of Africa (CBA) announced the acceptance of the offer made by the NIC Bank to swap their shares in CBA in exchange for the issue to such shareholders of shares in NIC.
After the share exchange, shareholders of CBA will in aggregate own 53 percent of the then issued shares in NIC Group while the existing NIC Group shareholders will own 47 percent.
“The Directors confirm that as of March 11th, 2019, 29 out of 34 shareholders holding 98.15 percent of the issued and fully paid up share capital of CBA have accepted the offer made by NIC Group to swap their shares in CBA in exchange for the issue to such shareholders of shares in NIC Group,” read a statement from CBA.