East Africa Growth Holding (EAGH) is set to acquire 86.5 million shares of I&M Group following a subscription agreement approved by the board of directors of I&M.
- •EAGH has agreed to subscribe for up to 86.5 million new ordinary shares which upon subscription comprise up to approximately 4.97% of the expanded total share capital of the I&M Group.
EAGH is willing to purchase the shares at a premium with the price set at KShs. 48.42 per share with the transaction valued at KShs.4.2 billion.
- •I&M’s share price is currently almost half the subscription price, closing the previous session at KSh25.05 per share. However, as at June 2024, the book value per share of I&M Group was KSh48.40.
The completion of the Transaction is subject to certain conditions that are customary to transactions on the trading price and value of the shares of I&M Group.
“Further details of the Transaction will be made available to the shareholders of the Company (the Shareholders) in due course,” I&M noted in a statement.
East Africa Growth Holding is a limited liability company incorporated and registered in Mauritius affiliated with AfricInvest, a private equity investor with interest in more than 200 companies across 35 African countries, and several sectors.
I&M Group is publicly listed at the Nairobi Securities Exchange (NSE) with subsidiaries in Rwanda, Mauritius, Tanzania and Uganda.
In March, EAGH acquired 10.13% of issued share capital of I&M Group from British International Investment valued at KSh6.5 billion. The deal saw EAGH gain indirect joint control over the listed lender with rights to appoint directors to the board, business plans and changes of management.
A subscription agreement is a contract between an investor and a company, through which the investor agrees to buy a given number of shares in the company.
