I&M Holdings PLC have acquired Orient Bank Limited from 8 miles LLP and Morka Holdings Limited. The acquisition process was completed on April 30, 2021 after receiving the necessary approvals from the Central Bank of Kenya, Bank of Uganda, Capital Markets Authority of Kenya and the COMESA Competition Authority.
Last year I&M Holdings Limited announced that they have reached an agreement to buy 90 per cent of Orient Bank Limited Uganda.
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. The flagship company of the group is I&M Bank Limited, with headquarters in the I&M Bank Tower on Kenyatta Avenue in the central business district of Nairobi, Kenya’s capital and largest city.
Through the acquisition, I&M Group has acquired additional net loan assets value of approximately Shs262 billion, deposits of Shs606 billion, a customer base of 68787, a staff component of 340 employees and a network of 14 branches and 22 ATMs across the country. A clear plan for the integration of OBL into the I&M Group has been developed and the Group expects to gain considerable business and operational synergies.
Orient bank is one of the leading Private sector commercial banks in Uganda since 1993. Its steady growth over the years can be attributed to its professional management and prudent Lending and investment policy.
As of December 2019, the company’s total assets were KES315.3 billion (US $2.95 billion), KES60.9 billion (US $568.1 million). At that time, company maintained subsidiaries in five countries.
Speaking on the acquisition, I&M Holding’s Executive Director, Sarit Raja Shah noted, “I&M Group aspires to be Eastern Africa’s leading financial partner for growth. The acquisition of OBL will place I&M Bank in an advantageous position to capitalize on the growth in the Eastern African economies and thereby ultimately increasing shareholder value.”
“This acquisition is expected to give the Group greater capacity to grow profitably, through extending our network to our Regional customers. Further it demonstrates our continued leadership role in the industry across East Africa”, Sarit Raja Shah added.
Dr. Ketan Morjaria, a founding member of OBL and continuing shareholder and Director said; “This acquisition marks a great milestone in the history of Orient Bank. We are proud to be integrating into a regional group like I&M Holdings PLC, which synergies will allow our customers to benefit from more seamless and superior banking products whilst continuing a tradition of trust.”
Kumaran Pather, CEO of OBL said “The acquisition of OBL by I&M Holdings PLC, will see the new entity rise to greater heights and allow us to broaden our market reach and penetration. The management of OBL is excited to be part of a large and growing Group and look forward to serving both new and existing customers with better products and digital channels across the region.”
“The management of OBL is excited to be part of a large and growing Group and look forward to serving both new and existing customers with better products and digital channels across the region,” he said.