I&M Holdings PLC has issued a cautionary announcement advising its shareholders of a proposed transaction between the bank and Uganda’s Orient bank Limited, which may affect the value of its shares. In the proposed transaction, I&M plans to acquire 90 per cent of the ownership of the Ugandan bank.
“Shareholders of I&M Holdings Plc are advised that the company has on the July 17, 2020 entered into an agreement with the shareholders of Orient Bank Limited for the sale and purchase of incorporated shares comprising 90 per cent of the issued share capital of Orient Bank Limited” reads the announcement.
According to company statements of 2019, Orient Bank owns a total asset base of Shs814 billion.
The proposed transaction is subject to regulatory and corporate approval from the Central Banks of Kenya and Uganda, the Capital Markets Authority and company shareholders.
Last year I&M Holdings spent KSh 430.6 million in investments in joint ventures in Uganda and Mauritius.
Orient bank has lately been struggling copying up with the competitive business environment. The bank is also rumoured to have been the watch list of Bank of Uganda for limited cash flow.
