I&M Holdings PLC has issued a cautionary announcement advising its shareholders of a proposed transaction between the bank and Uganda’s Orient bank Limited, which may affect the value of its shares.
In the proposed transaction, I&M plans to acquire 90% of the ownership of Uganda’s Orient bank which according to company statements of 2019, owns a total asset base of 814 billion UGX (KSh 23.6 billion).
“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 in part.
However, Africa Tembelea understands that the proposed transaction is subject to regulatory and corporate approval from Company Shareholders, the Central Banks of Kenya and Uganda and the Capital Markets Authority.
Last year I&M Holdings spent KSh 430.6 million in investments in joint ventures in Uganda and Mauritius.
– I&M Holdings –
I&M Holdings Limited, also known as I&M Bank Group is a conglomerate comprising financial service providers (banks and an insurance company).
The group’s headquarters are located in Nairobi, Kenya, with subsidiaries in Kenya, Mauritius, Rwanda and Tanzania. The flagship company of the group is I&M Bank Limited, with headquarters in the I&M Bank Tower on Kenyatta Avenue in the central business district of Nairobi, Kenya’s capital and largest city.
I&M Bank was founded in 1974 as Investments & Mortgages Limited, as a private company providing personalized financial services to business people in the Nairobi area. The firm converted to a commercial bank in 1996. In 2003, the bank acquired Bashara Bank of Kenya Limited thereby expanding its branch network, client base and assets under management.
In 2010, the group acquired a controlling interest in CF Union Bank of Tanzania, whose assets were estimated at about US$61 million in December 2009. In September 2010, CF Union Bank Tanzania rebranded to I&M Bank (Tanzania).
During 2012, the group acquired a controlling interest in Commercial Bank of Rwanda (BCR), the second-largest commercial bank in the Republic of Rwanda. In 2013 BCR rebranded to I&M Bank (Rwanda), to reflect its current shareholding.
In 2013, the boards of City Trust and I&M Bank announced a reverse takeover of the latter. A decision that was accepted by shareholders of both companies and completed in June 2013. City Trust’s name was changed to I&M Holdings and the I&M Bank’s subsidiaries were unbundled from the bank to I&M Holdings.
On 7 September 2015 I&M Holdings announced the acquisition of Giro Commercial Bank and merging of its business with that of I&M Bank Kenya. The process, which required regulatory approval, was concluded in February 2017, with Giro Commercial Bank surrendering its banking license and becoming part of I&M Bank Limited.
The shares of I&M Holdings Limited are listed on the Nairobi Securities Exchange (NSE), where they trade under the symbol IMHL.
As of October 2018 the shareholding of I&M Holdings Limited includes Minard Holdings Limited of Kenya with 21.37 per cent, Tecoma Limited of Kenya with 18.39 per cent, Ziyungi Limited of Kenya with 7.79, CDC Group of the United Kingdom with 10.13 per cent, while other shareholders individually not holding more than 5% each account for 32.32 per cent.