The merger which concluded early this month 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/CFM
The merger which concluded early this month 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.
Speaking at the announcement on Tuesday, I&M Holdings Executive Director Sarit Shah said that the listing provides the platform to raise additional capital in the future to facilitate the achievement of long term growth and expansion strategy.
“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,” he said.
He said that the merger comes at a time that I&M is looking into expanding its business into Uganda in the 2013 financial year and thereafter, Burundi.
“In our recent visits to Tanzania and Rwanda we have witnessed growing enthusiasm towards I&M Bank’s regional platform renewing our belief that our regional agenda will meet our objectives and drive the development of the financial system in the region,” he pointed out.
Shah said that this will also improve the company’s capacities to successfully manage the growth achieved in the last few years.
“It is now much easier for the shareholders of I&M Bank to trade in their shares at the NSE and at the same time unlock the value of shares held by City Trust investors thus boosting the liquidity of these shares,” he observed.
With about 300 million shares listed, already 10,000 shares have been bought at Sh93 per share and were trading at Sh103 per share.
Originally, City Trust Limited was listed on the Growth Enterprise Market Segment (GEMS) the alternative investment market segment of the NSE.
On his part, Nairobi Securities Exchange Chairman Eddy Njoroge hailed the ‘monumental occasion’ as it is the first reverse takeover that has been witnessed in Kenya’s 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.
“The NSE emphatically 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,” Njoroge urged.
Ziyungi Limited becomes the largest shareholder with 18.74 percent followed by Minard Holdings Limited with 17.27 percent and Tecoma Limited with 16.66 percent.
Others include Biashara Securities (13.92pc), DEG (6.25pc), Proparco (4.43pc), Prime Securities (3.65pc), Bhagwanji Raja Foundation (2.41pc), I&M ESOP Trust (0.35pc), and the Public (16.32pc).
