I&M Holdings has concluded the majority acquisition of Orient Bank Limited (OBL) from 8 miles LLP and Morka Holdings Limited both in Uganda.
Through the acquisition, I&M Group has acquired additional net loan assets of approximately Ksh7.7 billion, deposits of Ksh 18.2 billion, a customer base of close to 70,000, a staff component of 340 employees and a network of 14 branches and 22 ATMs across the country.
The acquisition was completed on late last month after approvals from key players namely; Central Bank of Kenya, Bank of Uganda, Capital Markets Authority of Kenya and the COMESA Competition Authority.
The move underscores I&M Group’s commitment to its growth and expansion strategy in Eastern Africa, where Uganda was the missing link in the Group’s strategic effort to set up its presence in all East African countries.
OBL is the 12th largest bank and a licensed and established commercial bank in Uganda, the statement added.
“I&M Holdings and Orient Bank signed an agreement in [last] July for I&M Holdings to acquire 90 per cent shareholding of the Ugandan entity,” it was disclosed in the statement.
I&M’s Group Executive Director, Sarit Raja Shah said the Group aspires to be Eastern Africa’s leading financial partner for growth.
“The acquisition of OBL will place I&M in an advantageous position to capitalise on the growth in the Eastern African economies and thereby ultimately increasing shareholder value,” Mr Shah said.
OBL founding member and Director Dr Ketan Morjaria said the deal marks a great milestone in the history of Orient Bank.
“We are proud to be integrating into a regional group like I&M Holdings and this synergy will allow our customers to benefit from more seamless and superior banking products whilst continuing our tradition of trust,” Dr Morjaria said.
The I&M Group’s plans focus on mergers and acquisitions as part of its growth strategy insisting as the financial institution continues to enhance our shareholders’ value and to provide our customers with a wide network of banking solutions across the region.
Orient bank is one of the leading private sector commercial banks in Uganda since 1993.
I&M Holdings Limited, also I&M Bank Group, is a conglomerate comprising banks, an insurance company and investment advisory businesses.
The group’s headquarters are located in Nairobi, Kenya, with subsidiaries in Kenya, Mauritius, Rwanda, Tanzania and Uganda.