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Potential merger NIC + CBA
Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
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Angelica _ann wrote:Ericsson wrote:https://www.businessdailyafrica.com/news/Ndegwa-family-loses-half-a-billion-in-Deacons-fall/539546-4954564-fk04jvz/index.html
Businesses owned by the wealthy Philip Ndegwa family took the biggest blow from the collapse of fashion retail chain Deacons East Africa, a report by the company’s administrators has revealed.
The Ndegwas risk losing a total of Sh424 million that Deacons owed their companies -- NIC Bank (Sh387.5 million), The Junction Mall (Sh35.4 million), ICEA Lion General Insurance Company (Sh887,675) and real estate management firm Knight Frank (Sh219,625). The last 2 they should just write off, peanuts - comparatively. Will this bank survive in the long run without further capital injection? Capital injection 💉 will come from CBA Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 1/1/2011 Posts: 396
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Ericsson wrote:Angelica _ann wrote:Ericsson wrote:https://www.businessdailyafrica.com/news/Ndegwa-family-loses-half-a-billion-in-Deacons-fall/539546-4954564-fk04jvz/index.html
Businesses owned by the wealthy Philip Ndegwa family took the biggest blow from the collapse of fashion retail chain Deacons East Africa, a report by the company’s administrators has revealed.
The Ndegwas risk losing a total of Sh424 million that Deacons owed their companies -- NIC Bank (Sh387.5 million), The Junction Mall (Sh35.4 million), ICEA Lion General Insurance Company (Sh887,675) and real estate management firm Knight Frank (Sh219,625). The last 2 they should just write off, peanuts - comparatively. Will this bank survive in the long run without further capital injection? Capital injection 💉 will come from CBA Agree. This is an outright acquisition, not a merger.
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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jmbada wrote:Ericsson wrote:Angelica _ann wrote:Ericsson wrote:https://www.businessdailyafrica.com/news/Ndegwa-family-loses-half-a-billion-in-Deacons-fall/539546-4954564-fk04jvz/index.html
Businesses owned by the wealthy Philip Ndegwa family took the biggest blow from the collapse of fashion retail chain Deacons East Africa, a report by the company’s administrators has revealed.
The Ndegwas risk losing a total of Sh424 million that Deacons owed their companies -- NIC Bank (Sh387.5 million), The Junction Mall (Sh35.4 million), ICEA Lion General Insurance Company (Sh887,675) and real estate management firm Knight Frank (Sh219,625). The last 2 they should just write off, peanuts - comparatively. Will this bank survive in the long run without further capital injection? Capital injection 💉 will come from CBA Agree. This is an outright acquisition, not a merger. The big picture (the bank is not in need of capital injection) 1. Core Capital to Total Risk Weighted Assets is 18.09% (This is way above the minimum statutory requirement of 10.5%) 2. Liquidity Ratio is 49.27% (This is way way over the minimum statutory requirement of 20%) 3. NPL ratio is within the industry average of c10% and it is unlikely to experience any significant change. Lending is a risk and therefore don't expect nil NPLs.
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Rank: Member Joined: 1/1/2011 Posts: 396
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mwekez@ji wrote:jmbada wrote:Ericsson wrote:Angelica _ann wrote:Ericsson wrote:https://www.businessdailyafrica.com/news/Ndegwa-family-loses-half-a-billion-in-Deacons-fall/539546-4954564-fk04jvz/index.html
Businesses owned by the wealthy Philip Ndegwa family took the biggest blow from the collapse of fashion retail chain Deacons East Africa, a report by the company’s administrators has revealed.
The Ndegwas risk losing a total of Sh424 million that Deacons owed their companies -- NIC Bank (Sh387.5 million), The Junction Mall (Sh35.4 million), ICEA Lion General Insurance Company (Sh887,675) and real estate management firm Knight Frank (Sh219,625). The last 2 they should just write off, peanuts - comparatively. Will this bank survive in the long run without further capital injection? Capital injection 💉 will come from CBA Agree. This is an outright acquisition, not a merger. The big picture (the bank is not in need of capital injection) 1. Core Capital to Total Risk Weighted Assets is 18.09% (This is way above the minimum statutory requirement of 10.5%) 2. Liquidity Ratio is 49.27% (This is way way over the minimum statutory requirement of 20%) 3. NPL ratio is within the industry average of c10% and it is unlikely to experience any significant change. Lending is a risk and therefore don't expect nil NPLs. Valuable analysis. Just 2 points from my end. 1....we don't have 2018 FY audited financials. A significant portion of profits comes from previous year write-backs on historically over-provisioned loans. 2. However, despite all this, having an NPL ratio of 10% or thereabouts and only being able to lend at 13% is not a sustainable business model. Which is why the rate cap remains completely untenable.
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Rank: Member Joined: 5/2/2018 Posts: 267
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Finally, an update tomorrow! Been wondering why there's huge demand, even though it hasn't traded yet.
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Rank: Elder Joined: 7/21/2010 Posts: 6,175 Location: nairobi
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Superprime1 wrote:Finally, an update tomorrow! Been wondering why there's huge demand, even though it hasn't traded yet.
is it all about insider trading in kenya but where is the huge demand? "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Member Joined: 5/2/2018 Posts: 267
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mlennyma wrote:Superprime1 wrote:Finally, an update tomorrow! Been wondering why there's huge demand, even though it hasn't traded yet.
is it all about insider trading in kenya but where is the huge demand? Over 100,000 units have since changed hands at 29. Yeah, NSE's transparency still opaque as some people always seem to know something ahead of others.
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Rank: Member Joined: 2/20/2007 Posts: 767
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jmbada wrote:mwekez@ji wrote:jmbada wrote:Ericsson wrote:Angelica _ann wrote:Ericsson wrote:https://www.businessdailyafrica.com/news/Ndegwa-family-loses-half-a-billion-in-Deacons-fall/539546-4954564-fk04jvz/index.html
Businesses owned by the wealthy Philip Ndegwa family took the biggest blow from the collapse of fashion retail chain Deacons East Africa, a report by the company’s administrators has revealed.
The Ndegwas risk losing a total of Sh424 million that Deacons owed their companies -- NIC Bank (Sh387.5 million), The Junction Mall (Sh35.4 million), ICEA Lion General Insurance Company (Sh887,675) and real estate management firm Knight Frank (Sh219,625). The last 2 they should just write off, peanuts - comparatively. Will this bank survive in the long run without further capital injection? Capital injection 💉 will come from CBA Agree. This is an outright acquisition, not a merger. The big picture (the bank is not in need of capital injection) 1. Core Capital to Total Risk Weighted Assets is 18.09% (This is way above the minimum statutory requirement of 10.5%) 2. Liquidity Ratio is 49.27% (This is way way over the minimum statutory requirement of 20%) 3. NPL ratio is within the industry average of c10% and it is unlikely to experience any significant change. Lending is a risk and therefore don't expect nil NPLs. Valuable analysis. Just 2 points from my end. 1....we don't have 2018 FY audited financials. A significant portion of profits comes from previous year write-backs on historically over-provisioned loans. 2. However, despite all this, having an NPL ratio of 10% or thereabouts and only being able to lend at 13% is not a sustainable business model. Which is why the rate cap remains completely untenable. What is the relationship between NPL ratio and Lending rate. They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
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Rank: Member Joined: 1/1/2011 Posts: 396
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tom_boy wrote:jmbada wrote:mwekez@ji wrote:jmbada wrote:Ericsson wrote:Angelica _ann wrote:Ericsson wrote:https://www.businessdailyafrica.com/news/Ndegwa-family-loses-half-a-billion-in-Deacons-fall/539546-4954564-fk04jvz/index.html
Businesses owned by the wealthy Philip Ndegwa family took the biggest blow from the collapse of fashion retail chain Deacons East Africa, a report by the company’s administrators has revealed.
The Ndegwas risk losing a total of Sh424 million that Deacons owed their companies -- NIC Bank (Sh387.5 million), The Junction Mall (Sh35.4 million), ICEA Lion General Insurance Company (Sh887,675) and real estate management firm Knight Frank (Sh219,625). The last 2 they should just write off, peanuts - comparatively. Will this bank survive in the long run without further capital injection? Capital injection 💉 will come from CBA Agree. This is an outright acquisition, not a merger. The big picture (the bank is not in need of capital injection) 1. Core Capital to Total Risk Weighted Assets is 18.09% (This is way above the minimum statutory requirement of 10.5%) 2. Liquidity Ratio is 49.27% (This is way way over the minimum statutory requirement of 20%) 3. NPL ratio is within the industry average of c10% and it is unlikely to experience any significant change. Lending is a risk and therefore don't expect nil NPLs. Valuable analysis. Just 2 points from my end. 1....we don't have 2018 FY audited financials. A significant portion of profits comes from previous year write-backs on historically over-provisioned loans. 2. However, despite all this, having an NPL ratio of 10% or thereabouts and only being able to lend at 13% is not a sustainable business model. Which is why the rate cap remains completely untenable. What is the relationship between NPL ratio and Lending rate. If you have NPLs of 12.4% then 12.4% of your lending portfolio may never get repaid back. If you are taking deposits and some shareholders equity in order to lend, then a 13% lending rate leaves ko room for all your other expenses AND to return a profit to shareholders.
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Rank: Member Joined: 2/20/2007 Posts: 767
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jmbada wrote:tom_boy wrote:jmbada wrote:mwekez@ji wrote:jmbada wrote:Ericsson wrote:Angelica _ann wrote:Ericsson wrote:https://www.businessdailyafrica.com/news/Ndegwa-family-loses-half-a-billion-in-Deacons-fall/539546-4954564-fk04jvz/index.html
Businesses owned by the wealthy Philip Ndegwa family took the biggest blow from the collapse of fashion retail chain Deacons East Africa, a report by the company’s administrators has revealed.
The Ndegwas risk losing a total of Sh424 million that Deacons owed their companies -- NIC Bank (Sh387.5 million), The Junction Mall (Sh35.4 million), ICEA Lion General Insurance Company (Sh887,675) and real estate management firm Knight Frank (Sh219,625). The last 2 they should just write off, peanuts - comparatively. Will this bank survive in the long run without further capital injection? Capital injection 💉 will come from CBA Agree. This is an outright acquisition, not a merger. The big picture (the bank is not in need of capital injection) 1. Core Capital to Total Risk Weighted Assets is 18.09% (This is way above the minimum statutory requirement of 10.5%) 2. Liquidity Ratio is 49.27% (This is way way over the minimum statutory requirement of 20%) 3. NPL ratio is within the industry average of c10% and it is unlikely to experience any significant change. Lending is a risk and therefore don't expect nil NPLs. Valuable analysis. Just 2 points from my end. 1....we don't have 2018 FY audited financials. A significant portion of profits comes from previous year write-backs on historically over-provisioned loans. 2. However, despite all this, having an NPL ratio of 10% or thereabouts and only being able to lend at 13% is not a sustainable business model. Which is why the rate cap remains completely untenable. What is the relationship between NPL ratio and Lending rate. If you have NPLs of 12.4% then 12.4% of your lending portfolio may never get repaid back. If you are taking deposits and some shareholders equity in order to lend, then a 13% lending rate leaves ko room for all your other expenses AND to return a profit to shareholders. I see your point. However, the bank only need be worried if the lending process was both reckless ( lent to persons who would not ordinarily have qualified) and unsecured. Non performing loans net of security should be very low. Look at Nakumatt and Deacons. Banks gave huge virtually unsecured loans based on what exactly! They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
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Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
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#Proposed CBA & NIC Group merger Joint press briefing. The bank will operate a network of more than 100 branches across five regional economic centres including Nairobi, Kampala, Dar es Salaam, Kigali and Abidjan. Serving over 40 million customers, the merged entity will be the largest bank in Africa by customer numbers. The merged entity will be amongst the largest financial institutions in the East Africa region with a total asset base in excess of KES 444 Billion and Shareholders’ Equity of KES 65 Billion. The proposed merger will be executed through a share swap, with the 34 shareholders of CBA exchanging their shares in CBA for new shares in NIC, which will remain a publicly listed company quoted on the Nairobi Securities Exchange. It will be the second largest bank in Kenya by customer deposits and third largest by total assets and a true market leader in Corporate Banking, Asset Finance and Digital Banking. 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. Until then, the two entities will continue to operate independently Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
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obiero wrote:murchr wrote:Horton wrote:Just received a PDF talking about a potential merger between CBA & NIC it’s like a press statement Does that mean NIC will be de-listed? Yes. Its more than likely considering trends of other Kenyatta family enterprise NIC bank won't be delisted Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
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VituVingiSana wrote:sparkly wrote:cyruskulei wrote:mwekez@ji wrote:obiero wrote:sparkly wrote:obiero wrote:murchr wrote:[quote=Horton]Just received a PDF talking about a potential merger between CBA & NIC it’s like a press statement Does that mean NIC will be de-listed? Yes. Its more than likely considering trends of other Kenyatta family enterprise This is a reverse meeger. An easy way for CBA to become listed. Just like CFC-Stanbic and IM-City Trust. In those examples you mention, both partner firms were listed already before the merger.. Secondly, name only one Kenyatta family company which is at the NSE.. It's not by coincidence, but choice, for well known reasons Wacha kutudanganya @Obiero. I&M and Stanbic had not been listed before the merger. Only City Trust and CFC had been listed. https://www.standardmedi...-of-africa-merger-talks[/quote] Very welcome news indeed. Excellent opportunity to unlock the true value of NIC which lies somewhere between 60-75 per share. NIC is 11% of my portifolio ABP 29.6 60-75? That's ambitious BUT #TukoPamoja if it gets there! Given the market and other banks PERs and PBs... 50/- is the max I think we can expect BUT I would love to be WRONG  and get 50+ @Sparkly #TukoPamoja in Stanbic or that's @Horton? This one is a 120/- at the minimum even with all the drama. I think the SAcans will probably want to go private eventually. I think they will creep up to 75% then try 90% and then delist. I they pay us a good price 120-150 [higher the better] so we can #AcceptAndMoveOn No payout or buyout of existing NIC Group Plc minority shareholders in the NSE Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 5/2/2018 Posts: 267
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NIC Group will be the holding company of the merged businesses. Merger to be consummated through share swap, business and asset transfer, and share acquisitions in relation to various constituent group companies of NIC Group and CBA Group.
CBA will technically reverse-list.
CBA shareholders will own 53% of the issued shares in NIC Group, which will remain listed.
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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Superprime1 wrote:NIC Group will be the holding company of the merged businesses. Merger to be consummated through share swap, business and asset transfer, and share acquisitions in relation to various constituent group companies of NIC Group and CBA Group.
CBA will technically reverse-list.
CBA shareholders will own 53% of the issued shares in NIC Group, which will remain listed. Link? Life is short. Live passionately.
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Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
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sparkly wrote:Superprime1 wrote:NIC Group will be the holding company of the merged businesses. Merger to be consummated through share swap, business and asset transfer, and share acquisitions in relation to various constituent group companies of NIC Group and CBA Group.
CBA will technically reverse-list.
CBA shareholders will own 53% of the issued shares in NIC Group, which will remain listed. Link? https://twitter.com/hashtag/Merger2019?src=hashWealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 7/21/2010 Posts: 6,175 Location: nairobi
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Another counter is recovering my portfolio faster than I expected just after Kk boosted me,now kcb is my next hope "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Member Joined: 5/2/2018 Posts: 267
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Ericsson wrote:sparkly wrote:[quote=Superprime1]NIC Group will be the holding company of the merged businesses. Merger to be consummated through share swap, business and asset transfer, and share acquisitions in relation to various constituent group companies of NIC Group and CBA Group.
CBA will technically reverse-list.
CBA shareholders will own 53% of the issued shares in NIC Group, which will remain listed. Link? https://twitter.com/hashtag/Merger2019?src=hash[/quote] Looks a good deal by and large, so far.
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Rank: Chief Joined: 1/3/2007 Posts: 18,053 Location: Nairobi
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mlennyma wrote:Another counter is recovering my portfolio faster than I expected just after Kk boosted me,now kcb is my next hope  though I am an Equity not KCB fan but #TukoPamoja Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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Superprime1 wrote:Ericsson wrote:sparkly wrote:[quote=Superprime1]NIC Group will be the holding company of the merged businesses. Merger to be consummated through share swap, business and asset transfer, and share acquisitions in relation to various constituent group companies of NIC Group and CBA Group.
CBA will technically reverse-list.
CBA shareholders will own 53% of the issued shares in NIC Group, which will remain listed. Link? https://twitter.com/hashtag/Merger2019?src=hash[/quote] Looks a good deal by and large, so far. Excellent deal. Not far from my prediction of CBA:NIC 60%:40% share swap. Life is short. Live passionately.
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Potential merger NIC + CBA
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