Acquisition
In July 2020, I&M Holdings Limited signed an agreement with the shareholders of Orient Bank Limited, to buy 90 per cent equity in the issued share capital of Orient Bank Limited. The transaction was valued in excess of KSh 2 billion (US$20 million), and was subject to regulatory approval from Uganda and Kenya.[20]
In November 2020, the Business Daily Africa newspaper reported that I&M Holdings Limited of Kenya would pay US$33.6 million in exchange for 90 per cent shareholding in Orient Bank. After the acquisition has been concluded, the shareholding in the institution looks as illustrated in the table below.[21][22]
The acquisition of 90 per cent shareholding in this bank by I&M Holdings Limited was concluded on 30 April 2021 when necessary approvals were obtained from the "Central Bank of Kenya, the Bank of Uganda, the Capital Markets Authority of Kenya and the Common Market for Eastern and Southern Africa (COMESA)".[23]
At the time it was acquired, I&M Bank Uganda, according to The East African newspaper, had a customer base of about 70,000, deposits worth KSh 18.2 billion (US$170.09 million), and a net loan book of approximately KSh 7.7 billion (US$71.96 million). At that time, the bank employed 340 members of staff, in 14 networked branches, and maintained 22 automated teller machines.[23]
On 8 November 2021, Orient Bank rebranded to I&M Bank Uganda, following authorization by the Bank of Uganda.[24]
In January 2022, the Business Daily Africa reported that the final price paid for the 90 per cent shares in Orient Bank had risen from KSh 3.6 billion to KSh 4.1 billion, after valuation of the quality of assets of the acquired subsidiary. (KSh 4.1 billion was about US$36.26 million on 31 January 2022). The final payment was expected to conclude in July 2022.[25]
