I&M Holdings PLC has sought shareholder approval to acquire a 90 percent stake in Orient Bank Uganda.
Shareholders will consider the proposed USD 33.6 million (KSh3.6 billion) transaction during an Extraordinary General Meeting (EGM) scheduled for 2 December 2020.
If approved, the lender will buy the shares from Hemlata Karia, Jay Karia, Morka Holdings Limited, Zhong Shuang Quan, Cornerstone M8 Limited, and the bank’s founder Ketan Morjaria.
Dr. Morjaria holds a 7.91 percent stake, will only sell part of his shares, and will retain a 5.5 percent equity in what will become I&M’s subsidiary.
Mr. Alemayehu Fisseha will retain a 4.5 percent interest in the bank according to the latest information.
“I&M is required to effect payment of the purchase consideration for Orient’s shares by way of an amount in $33.6 million (KSh3.6 billion),” the Nairobi Securities Exchange-listed lender said in the circular.
I&M currently runs a corporate finance advisory business, I&M Burbidge Capital, in Uganda and the acquisition of the bank will expand its operations in that market.
“The combined group will be better able to serve the needs of regional and global customers, and in turn promote regional trade flows,” I&M said of the Orient Bank buyout.
“In its regional expansion strategy, I&M Bank Group seeks to follow its customers in order to support their business and banking needs. This will be fulfilled by its presence in Uganda.”
I&M Holding operates in five countries – Kenya, Tanzania, Rwanda, Uganda, and Mauritius through its subsidiaries, affiliates, and joint venture investments in each of these countries.