I&M Holdings Plc. finalized the acquisition of 90% of the shares of Ugandan private lender Orient Bank Ltd (OBL) as part of its regional expansion plan.
In a statement released on Monday, I&M said the acquisition was completed on April 30, 2021 after the transaction received the necessary approvals from the Central Bank of Kenya, Bank of Uganda, Markets Authority capital from Kenya and the Common Market for Eastern and Southern Africa (Comesa).
The deal for the deal priced at Ush 96.75 billion ($ 26.93 million) was reached in July of last year.
âI&M Group aspires to be East Africa’s premier financial partner for growth. The acquisition of OBL will put I&M Bank in an advantageous position to capitalize on the growth of the economies of East Africa and thereby increase shareholder value, âsaid Sarit Raja Shah, Executive Director of I&M Group.
âThis acquisition should give the Group greater capacity to develop profitably, by extending our network to our regional customers. Additionally, it demonstrates our continued leadership role in the industry across East Africa.
I&M Bank currently has 358.09 billion Ksh ($ 3.34 billion) in assets and a total of 79 branches in Kenya (41 branches), Rwanda (18 branches), Tanzania (8 branches) and Mauritius (12 branches).
However, the acquisition of the Ugandan lender brings in additional net assets of around Ksh 7.7 billion ($ 71.96 million), deposits (Ksh 18.2 billion, $ 170.09 million), a customers (70,000), a workforce of 340 employees. and a network of 14 branches and 22 automated teller machines (ABMs) across the country.