I&M investors approved the purchase of 90% stake in Uganda’s Orient Bank Limited during the company’s Extraordinary General Meeting (EGM) held on 2nd December. The shareholders unanimously voted in favor of the acquisition of 87,075,000 ordinary shares of Orient bank at a cost of KSh 3.6 Billion. However, the transaction still needs regulatory approval from the Central Bank of Kenya, the Capital Markets Authority, the Bank of Uganda, and COMESA Competition Authority before it is finalized.
Through the acquisition, I&M holdings is seeking to grow its business in the East African region as competition in the banking sector intensifies. The company already has a presence in Kenya, Tanzania, Uganda, Rwanda, and Mauritius.
I&M shareholders also amended the Company’s Articles of Association to have a minimum of seven directors on the board and a maximum of 12 directors.
I&M Holdings has had a tough year due to the economic downturn experienced in the countries it operates in. In the third quarter of 2020, it reported a 30% dip in net profit from the same period last year. The company expects its full-year earnings to drop by more than 25% of the earnings reported at the end of 2019. The bank’s management and board are optimistic and expect improved financial performance in the coming year.