I&M Holdings Limited, the owners of I&M Bank Kenya, have announced that they have reached an agreement to buy 90 per cent of Orient Bank Limited Uganda.
The proposed transaction is subject to regulatory and corporate approval from the Central Banks of Kenya and Uganda, the Capital Markets Authority and company shareholders.
The deal was sealed on July 17, 2020.
“Shareholders of I&M Holdings Plc are advised that the company has on the 17th July 2020 entered into an agreement with the shareholders of Orient Bank Limited for the sale and purchase of incorporated shares comprising 90% of the issued share capital of Orient Bank Limited” reads the announcement.
I&M Holdings Limited is not new to acquisitions in Uganda. In 2016, it acquired 65 per cent shareholding in Burbidge Capital Group, a financial advisory firm. After the acquisition, Burbidge Capital was renamed I&M Burbidge Capital.
Orient Bank Limited launched its services in Uganda in 1993. In 1996, it opened a branch in Jinja, the first outside Kampala. The bank then acquired Trans-Africa Bank Limited in 2002, which had been declared insolvent by Bank of Uganda.
Through its history, the bank has gone through several ownerships by different entities and individuals. The last acquisition was by the London-headquartered private equity fund 8 Miles, founded by musician Bob Geldof, who acquired a 42 per cent stake in Orient Bank (U) Ltd in 2015. The founders of the bank, led by Ketan Morjaria, hold 49 per cent in the bank.
The remaining shareholding is by individuals Alemayehu Fisseha, the owner of Prime General Supplies, and the Ugandan-based Chinese manufacturer and property developer, Zhong Shuang Quan – each with 4.5 per cent.
Orient Bank owns a total asset base of Shs814 billion.
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