Kenyan financial firm I&M holdings has completed the acquisition of 90% stake in Uganda’s 12th largest commercial bank, Orient bank Limited.
The deal to acquire majority shareholding in Orient from 8 miles LLP and Morka Holdings Limited was signed in July 2020 but had been pending approvals from the necessary regulatory authorities.
This week, I&M announced that the acquisition was completed on 30th April 2021 after getting transaction approvals from Central Bank of Kenya, Bank of Uganda, Capital Markets Authority of Kenya and the COMESA Competition Authority.
“The move underscores I&M Group’s commitment to its growth and expansion strategy in Eastern Africa, where Uganda was the missing link in the Group’s strategic effort to set up its presence in all East African countries,” I&M said in a statement.
Commenting on the acquisition, I&M’s Group Executive Director, Sarit Raja said I&M Group aspires to be Eastern Africa’s leading financial partner for growth adding that the acquisition of Orient will place I&M Bank in an advantageous position to capitalise on the growth in the Eastern African economies and thereby ultimately increasing shareholder value.
I&M already has footprints in Rwanda, Kenya, Tanzania and Mauritius.
“This acquisition is expected to give the Group greater capacity to grow profitably, through extending our network to our Regional customers. Further, it demonstrates our continued leadership role in the industry across East Africa”, Sarit Raja Shah noted.
Dr Ketan Morjaria, a founding member of OBL and continuing shareholder and Director said “This acquisition marks a great milestone in the history of Orient Bank. We are proud to be integrating into a regional group like I&M Holdings PLC and this synergy will allow our customers to benefit from more seamless and superior banking products whilst continuing our tradition of trust.”
The transaction sees I&M acquire additional net loan assets value of approximately Shs 262 billion, deposits of Shs 606 billion, a customer base of 68,787, a staff component of 340 employees and a network of 14 branches and 22 ATMs across the country.