I&M Holdings, which owns of I&M Bank, yesterday announced that it has concluded acquisition of 100 per cent shareholding of Giro Commercial Bank. The bank said it would now convert Giro Bank branches to I&M Bank outlets. The conclusion of the transaction follows regulatory and shareholder approval.
“The move underscores I&M Group’s expansion strategy, which seeks for opportunities to expand both locally and regionally by way of acquisitions,” I&M Bank’s Executive Director, Mr Sarit Raja Shah, said. He added that the two institutions entered into an agreement in September 2015 for I&M Bank Limited to acquire 100 per cent of the issued share capital in GCBL. The agreement also facilitated for the merger of GCBL’s banking assets and liabilities with that of I&M Bank Limited.
Through the merger, I&M Group has acquired additional net advances of approximately Sh9.1 billion, and deposits of Sh12.6 billion besides other assets of approximately Sh6.7 billion. I&M Group has also acquired GCBL’s branch network which will supplement I&M Bank’s existing network of 36 branches.
I&M has presence in Rwanda, Mauritius and Tanzania. It is listed on the NSE with a market capitalisation of Sh32.86 billion. I&M Bank said it would retain Giro Bank’s employees. It had more than 100 employees in Nairobi, Mombasa and Kisumu. According to Central Bank of Kenya, I&M Bank had 35 branches as of December 31 and ranked ninth in terms of market share. Giro Bank had seven branches and ranked 26th in terms of market share.
“Taken together, they had a combined market share of about five per cent as at December 31, 2016,” said Central Bank in an update yesterday.