A transaction that will see listed investment company City Trust wholly own I&M Bank is nearing completion after the two firms got regulatory approvals, according to the Kenyan Daily, The Standard.In a cautionary statement yesterday, the two firms said the deal that will see I&M shareholders exchange their shares in the bank for shares in City Trust was now subject to shareholder approval.The move has taken longer than initially expected, with City Trust having issued a first cautionary on the planned acquisition of I&M Bank September last year.The two companies noted that they do not expect changes in the operations of I&M Bank, which recently acquired the Rwanda Commercial Bank (BCR).“Following the completion, City Trust will become the holding company of I&M Bank. It should be noted that there will be no change in the operations of I&M Bank and it will continue with its banking business,” said the statement by the two firms in the daily newspapers yesterday.“Negotiations on the principal terms of the transaction between the parties have been concluded, whereby the shareholders of I&M Bank will exchange their shares in I&M Bank for shares in City Trust.”The deal is technically a reverse listing by I&M Bank, as it will have its shares trading at the Nairobi Securities Exchange through City Trust, which will now be its holding company. Future investments will be made by City Trust on behalf of I&M Bank. City Trust Ltd is a listed investment holding company, whose major shareholders include Prime Securities Investment Trust Ltd, among others. City Trust Ltd has a wholly owned subsidiary, Kenstock Ltd.
