British International Investment (BII), a UK development finance institution, has agreed to sell its 10.13 per cent stake in I&M Group to East Africa Growth Holding, an investment vehicle established by Africinvest Fund IV and its affiliates.
The transaction is subject to customary conditions, including regulatory approvals in Kenya and other countries where I&M Group operates, the bank said in a statement.
“Completion of the proposed transaction is subject to certain conditions that are customary to transactions of this nature including receipt of all regulatory approvals in Kenya and in other countries where the company has operating subsidiaries,” I&M said in a statement.
East Africa Growth Holding is a related party to BII, which is an investor in Africinvest Fund IV, a pan-African fund that targets mid-cap and growth-oriented companies in sectors such as finance, agribusiness, and logistics.
BII, formerly known as CDC Group, acquired a 10.68 per cent stake in I&M Group in April 2016, as part of its strategy to support lending to small and medium-sized enterprises in East Africa.
The stake was later diluted to 10.13 per cent after I&M Group issued new shares to finance its expansion.
British International Investment (BII) was the fourth largest shareholder in I&M Group, after Minard Holdings Limited, Tecoma Limited, and Ziyungi Limited, which own 21.6 per cent, 18.4 per cent and 17.8 per cent of the bank respectively, according to the 2022 annual report.
I&M Group was founded in 1974 as a financial services company and later transformed into a bank.
It has operations in Rwanda, Tanzania, Uganda, and Mauritius, besides Kenya.
