NAIROBI, Kenya, May 18 – Shareholders of I&M Holdings Limited, have approved the firm’s bid to acquire Burbidge Capital Limited, to boost the Group’s market delivery capacity.
Subject to regulatory approval, I&M Holdings will acquire 65 percent of Burbidge Capital Limited, a corporate finance advisory firm based in Kenya and Uganda.
Burbidge Capital focuses on large and mid-sized companies in the region with typical transaction sizes ranging between Sh411 million (US$4mn) and Sh15.4 billion (US$150mn).
The amount of the deal is yet to be revealed.
Burbidge Capital acted as Nominated Adviser and Placing Agent on the recent cross listing of Atlas Development & Support Services Limited on the Nairobi Securities Exchange and the contemporaneous US$5 million Kenya fundraising, which completed in December 2014.
The firm was also the nominated advisor and placing agent on the listing of Flame Tree Group, owner of Roto Tanks, Zoe and Alana brands.
Last year the firm also announced plans to purchase Giro Commercial Bank Limited(GCBL) that will see GCBL merge with I&M under I&M Bank, a subsidiary of I&M Holdings.
I&M Holdings Chairperson, Daniel Ndonye said the Group is pursuing several strategic projects geared at placing the firm in a good position to harness growth opportunities locally and in the region.
“Our Group strategy is to emerge as a one-stop-center for all the financial needs of our customers,” he said.
During the Annual General Meeting(AGM) held on Wednesday, shareholders approved a dividend payment of Sh3.50 per share amounting to Sh1,3 billion for the year ended 31st December 2015, representing 21 per cent earnings per share (EPS) growth up from Sh2.90 paid out the previous year.
The shareholders also passed a special resolution allowing for the amendment of the firm’s Articles of Association to reflect the proposed entry of CDC Group as a major investor in I&M Holdings.
CDC Group plc, the UK’s development finance institution, plans to buy a 10.68 per cent equity stake purchase in I&M Holdings through the purchase of equity stakes earlier held by DEG and Proparco, (the German and French development finance institutions, respectively).
The completion of the transaction is expected to be concluded in the next couple of months.
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Last year, I&M Bank Kenya, registered a growth of 8 percent in its pretax profit to Sh8.4 billion up from Sh7.7 billion in 2014.
Customer deposits during the period grew by 20 percent from Sh86.6 billion to reach Sh103.7 billion.
The bank’s asset base stands at Sh147.8 billion.