Bloomberg the Company

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Follow Us

Industry Products

City Trust of Kenya Shares Climb to Record High: Nairobi Mover

Don't Miss Out —
Follow us on:

Jan. 23 (Bloomberg) -- City Trust Ltd. rose to a record after a newspaper report said the Kenyan investment company’s proposed merger with a bank will boost its market value.

The stock surged by the maximum daily limit of 10 percent to 440 shillings before paring the gains to 1.8 percent or 407 shillings by the 3 p.m. close in the capital, Nairobi. That is the highest level since May 20, 1997, when Bloomberg began compiling data on the stock. About 52 percent of the three-month daily average volume of shares were traded.

The proposed merger with Nairobi-based I&M Bank Ltd. may be worth 29 billion shillings ($330.7 million), Business Daily reported, citing documents from the companies. City Trust has a market value of 2.52 billion shillings now.

“Based on 2011 earnings, the company would easily come into the market at a level of between 80 shillings and 100 shillings per share,” Francis Mwangi, head of research at Nairobi-based Standard Investment Bank Ltd., said in a phone interview.

Under the planned merger announced on Dec. 24, City Trust shares will be split five times, placing the current market price at 88 shillings.

To contact the reporter on this story: Eric Ombok in Nairobi at eombok@bloomberg.net

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.