AIB Capital and ApexAfrica Capital are set to merge their Kenyan businesses.
In a joint statement yesterday, the two firms yesterday said a binding agreement had been signed by their shareholders that will see their stock brokerage, bond trading, research and corporate finance businesses merged.
ApexAfrica Capital Executive Director Louis Lallia said both firms would continue to operate independently until regulators approve the merger.
ApexAfrica is part of AXYS Group, the Mauritian financial services firm that acquired it in 2015.
It said the joint venture will “provide new and greater opportunities for employee development, growth and advancement”.
“We are delighted at the prospect of joining forces with AIB as a second step of our development and enhance our local presence in Kenya. Both entities will continue to operate independently until the regulators approve the merge,” said Mr Lallia.
AIB Capital Chief Executive Paul Mwai said merger of the two businesses would create enhanced capacity through capital consolidation.
“We are excited for the possibility to combine the two businesses; which will also create enhanced capacity through capital consolidation allowing it to create wider service solutions for clients; who will also benefit from strong relationship management and customer service excellence,” he said.
The statement said that both boards firmly believe that the merged entity “will be strongly placed to play a bigger and more significant role in the financial sector of Kenya, the region and beyond” and added that the new entity would be a leader in the digital front.
“On the digital front, the combined entity will remain a clear leader in innovation, through established brands such as AIB DigiTrader, the first trading platform in Kenya to fully automate the trading process,” said the statement.
“The entity will see sustained investment in networks and disruptive future technologies enhancing the range and quality of products and service offerings in the market; offering greater financial inclusion and convenience to customers.”