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Banking group I&M Holdings (NSE:IMH) will pay Sh3.6 billion to acquire a 90 percent stake in Uganda’s Orient Bank, according to disclosures in a circular to shareholders.

 

The shares will be bought from Hemlata Karia, Jay Karia, Morka Holdings Limited, Zhong Shuang Quan, Cornerstone M8 Limited and the bank’s founder Ketan Morjaria.

 

Dr Morjaria, who currently holds a 7.91 percent stake, will only sell part of his shares and will retain a 5.5 percent equity in what will become I&M’s subsidiary.

Mr Alemayehu Fisseha is not selling his holdings and will also retain a 4.5 percent interest in the bank.

 

“I&M is required to effect payment of the purchase consideration for Orient’s shares by way of an amount in $33.6 million (Sh3.6 billion),” the Nairobi Securities Exchange-listed lender said in the circular.

 

I&M added that the purchase price is subject to further adjustments on account of several factors including exchange rate fluctuations and the amounts raised from the sale of the Ugandan bank’s property in Kampala (Orient Plaza).

 

The deal will add to I&M’s regional banking operations comprising Kenya, Rwanda, Tanzania and Mauritius.

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