8 Miles completes sale of Orient Bank Limited to I&M Holdings PLC
8 Miles, a pan-African Private Equity firm, is exiting Orient Bank after a six-year holding period having first backed the company in 2015. The deal was structured through 8 Miles Fund I.
I&M Holdings Plc signed an agreement in July 2020 to acquire 90 percent shareholding of Orient Bank from 8 Miles and other sellers, including the founders. The acquisition was completed on 30th April 2021 after receiving the necessary approvals from the Central Bank of Kenya, Bank of Uganda, Capital Markets Authority of Kenya and the COMESA Competition Authority.
Orient Bank is a medium size commercial bank licenced by the Bank of Uganda to provide banking, stockbroking and other related financial services to retail and corporate customers. Founded in 1993 and headquartered in Kampala, the bank employs 340 people.
I&M Holdings PLC is a regional banking and financial services group with a presence in Kenya, Tanzania, Rwanda, Mauritius and now Uganda. Listed on the Nairobi Securities Exchange with a market capitalization of KES 37.5 billion, it is regulated by the Capital Markets Authority as well as by the Central Bank of Kenya as a non-operating holding company.
Commenting on the acquisition, I&M Group’s Executive Director, Sarit Raja Shah noted, “I&M Group aspires to be Eastern Africa’s leading financial partner for growth. The acquisition of OBL will place I&M Bank in an advantageous position to capitalize on the growth in the Eastern African economies and thereby ultimately increasing shareholder value.”
Dr. Ketan Morjaria, a founding member of OBL and continuing shareholder and Director, said “This acquisition marks a great milestone in the history of Orient Bank. We are proud to be integrating into a regional group like I&M Holdings PLC, whose strengths and networks will allow our customers to benefit from more seamless and superior banking services whilst continuing a tradition of trust.”
Hemen Shah, co-founding partner at 8 Miles and a director of Orient Bank said: “We have been delighted to work closely with the management team at Orient Bank in the transformation of the business. This is a great example of the ability of 8 Miles to work with local management teams to create enhanced value for the management, staff and customers. 8 Miles is pleased to exit its stake to I&M Holdings, a leading financial group and a responsible investor with a good track record in the region”.
Clifford Chance and Bowmans Kenya acted as legal advisors to 8 Miles on this transaction.