Orient Bank Speaks Out On Sale Of 90% Shares To I&M

Orient Bank Speaks Out On Sale Of 90% Shares To I&M

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By Spy Uganda

Kampala: Orient Bank management has said they agreed to sell majority shares of the bank to a Kenyan company in order to facilitate its growth into a leading player in Uganda’s banking sector.

“The proposed transaction is entered into as part of the Bank’s growth strategy aimed at becoming a leading player in Uganda’s banking industry and part of a strong and growing regional banking group,” said Kumaran Panther, the Bank’s Managing Director in a statement on Thursday.

Download: Full Orient Bank Statement On Sale Of Shares

The remaining 10 percent shareholding shall be held by Dr Kentan Morjaria, the bank founding member and Alernayehu Fisseha, the proprietor of General Supplies Limited who has been owning 4.5% of the bank, the statement further revealed.

Dr Morjaria’s family has been owning 49% while London-headquartered private equity fund 8 miles, founded by musician Bob Geldof, bought a 42 percent stake in Orient Bank (U) Ltd in 2015. Geldof is exiting after five years.

Earlier this week it was understood by this website that I&M Holdings Limited, the owners of I&M Bank Kenya, had reached an agreement with the Bank owners to buy 90 percent of the bank, although the transaction still awaits approval from regulators in Kenya and Uganda.

I&M Holdings, which is listed on the Nairobi stock exchange said the acquisition of the bank is now subject to several conditions including regulatory and corporate approvals from the central Bank of Kenya, Uganda, Capital Markets Authority and shareholders of the company in general meeting.

Following a major corporate restructuring in 2013-2014, I&M Holdings PLC became the parent company of all regional banking entities of the I&M Bank group.
As at March 2020, its total assets were approximately USD 3.2 billion, it had a branch network of 79 branches and a staff complement of over 2,030 spread across the five countries. Based on the share price as at March 2020, the company’s market capitalization was approximately USD 400 million.

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