I&M Holdings has completed 90% ownership in Orient Bank, a licensed and well-established bank in Uganda.
I&M Holdings PLC and Orient Bank Limited signed an agreement in July 2020 for I&M Holdings PLC to acquire 90 % shareholding of the Ugandan entity. The acquisition was completed on 30th April 2021 after receiving the necessary approvals from the Central Bank of Kenya, Bank of Uganda, Capital Markets Authority of Kenya and the COMESA Competition Authority.
In a public statement dated 30th April 2021, the Nairobi Securities Exchange-listed firm said, “I&M Holdings is pleased to inform its shareholders and the investing public that all of the regulatory and corporate approvals having been received and each of the conditions precedent to completion of the transaction having been fulfilled, the acquisition transaction was completed on the 30th April 2021”.
The acquisition is part of I&M’s strategy to expand its business in the East African region as competition intensifies in the banking industry. I&M Holdings has businesses in Kenya, Uganda, Tanzania, Rwanda and Mauritius.
Commenting on the acquisition, I&M’s Group Executive Director Sarit Raja Shah noted, “I&M Group aspires to be Eastern Africa’s leading financial partner for growth.
“The acquisition of OBL 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’s Group Executive Director, Sarit Raja Shah
The lender says the transaction has given it access to additional loans worth Kes 7.7 billion, deposits, 70,000 customers, 14 branches and 22 ATMs.
The acquisition supports the Group’s Business Growth initiatives by diversification of revenue streams by entry into new markets and extension of its Corporate, Business, Personal Banking, and Treasury and Trade Finance solutions to all its customers operating in Uganda.
Dr Ketan Morjaria, a founding member of OBL and continuing shareholder and Director, expressed optimism saying.
“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.” Dr Ketan Morjaria
The I&M Group will continue to focus on mergers and acquisitions as part of its growth strategy. We continue to enhance our shareholders’ value and provide our customers with a wide network of banking solutions across the region.