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8 Pages«<678
Eye on I&M ...
Ericsson
#141 Posted : Monday, July 20, 2020 10:21:22 AM
Rank: Elder


Joined: 12/4/2009
Posts: 8,849
Location: NAIROBI
I&M bank making an acquisition in Uganda.
They are acquiring 90% of the issued share capital of Orient Bank Limited,Uganda
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
VituVingiSana
#142 Posted : Monday, July 20, 2020 4:44:18 PM
Rank: Chief


Joined: 1/3/2007
Posts: 17,201
Location: Nairobi
Is Credit Bank (Kenya) next?
https://www.businessdail...596268-pkpou5/index.html
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Ericsson
#143 Posted : Monday, July 20, 2020 7:26:45 PM
Rank: Elder


Joined: 12/4/2009
Posts: 8,849
Location: NAIROBI
[quote=VituVingiSana]Is Credit Bank (Kenya) next?
https://www.businessdail...96268-pkpou5/index.html[/quote]

Yes its next and that depends on whether the Nyachae family is willing to let go.
Other banks on the lineup
Spire bank
Housing Finance
ABC Bank
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
VituVingiSana
#144 Posted : Monday, July 20, 2020 10:28:02 PM
Rank: Chief


Joined: 1/3/2007
Posts: 17,201
Location: Nairobi
Ericsson wrote:
VituVingiSana wrote:


Yes its next and that depends on whether the Nyachae family is willing to let go.
Other banks on the lineup
Spire bank
Housing Finance
ABC Bank

I meant for I&M to acquire though is Credit Bank compelling enough for I&M?

Spire and HF are too dirty (NPLs) for I&M. No idea about ABC.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Ericsson
#145 Posted : Monday, July 20, 2020 11:04:42 PM
Rank: Elder


Joined: 12/4/2009
Posts: 8,849
Location: NAIROBI
VituVingiSana wrote:
Ericsson wrote:
VituVingiSana wrote:


Yes its next and that depends on whether the Nyachae family is willing to let go.
Other banks on the lineup
Spire bank
Housing Finance
ABC Bank

I meant for I&M to acquire though is Credit Bank compelling enough for I&M?

Spire and HF are too dirty (NPLs) for I&M. No idea about ABC.


Credit bank is compelling, its bigger than orient bank Uganda and the recently acquired Giro bank
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
kmucheke
#146 Posted : Wednesday, July 22, 2020 8:21:47 PM
Rank: Member


Joined: 3/16/2019
Posts: 172
Ericsson wrote:
I&M bank making an acquisition in Uganda.
They are acquiring 90% of the issued share capital of Orient Bank Limited,Uganda


Quote:
Orient bank launched its services in Uganda in 1993.The bank then acquired Trans-Africa Bank Limited in 2002, which had been declared insolvent by Bank of Uganda.

Through its history, the bank has gone through several ownerships by different entities and individuals. The last acquisition was by the London-headquartered private equity fund 8 Miles, founded by musician Bob Geldof, who acquired a 42 per cent stake in Orient Bank (U) Ltd in 2015. The founders of the bank, led by Ketan Morjaria, hold 49 per cent in the bank.

The remaining shareholding is by individuals Alemayehu Fisseha, the owner of Prime General Supplies, and the Ugandan-based Chinese manufacturer and property developer, Zhong Shuang Quan – each with 4.5 per cent.

In 2019, the bank struggled to make money, turning in a loss of Shs 1 billion from a Shs 5.6 billion profit registered in 2018. Its assets grew to Shs 814 billion in 2019 from Shs 749 billion in 2018, according to the official published financial results.

LINK

The bank seems to operating around 15 branches but some are being merged due to covid. Let's wait and see how many branches I&M will have if the deal goes through and whether they can make profits.
VituVingiSana
#147 Posted : Wednesday, July 22, 2020 11:34:40 PM
Rank: Chief


Joined: 1/3/2007
Posts: 17,201
Location: Nairobi
kmucheke wrote:
Ericsson wrote:
I&M bank making an acquisition in Uganda.
They are acquiring 90% of the issued share capital of Orient Bank Limited,Uganda


Quote:
Orient bank launched its services in Uganda in 1993.The bank then acquired Trans-Africa Bank Limited in 2002, which had been declared insolvent by Bank of Uganda.

Through its history, the bank has gone through several ownerships by different entities and individuals. The last acquisition was by the London-headquartered private equity fund 8 Miles, founded by musician Bob Geldof, who acquired a 42 per cent stake in Orient Bank (U) Ltd in 2015. The founders of the bank, led by Ketan Morjaria, hold 49 per cent in the bank.

The remaining shareholding is by individuals Alemayehu Fisseha, the owner of Prime General Supplies, and the Ugandan-based Chinese manufacturer and property developer, Zhong Shuang Quan – each with 4.5 per cent.

In 2019, the bank struggled to make money, turning in a loss of Shs 1 billion from a Shs 5.6 billion profit registered in 2018. Its assets grew to Shs 814 billion in 2019 from Shs 749 billion in 2018, according to the official published financial results.

LINK

The bank seems to operating around 15 branches but some are being merged due to covid. Let's wait and see how many branches I&M will have if the deal goes through and whether they can make profits.
Seems I&M will have to put some cash into it as well so the total investment will be higher than just the purchase price.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
kmucheke
#148 Posted : Monday, August 03, 2020 9:20:32 AM
Rank: Member


Joined: 3/16/2019
Posts: 172
VituVingiSana wrote:
kmucheke wrote:
Ericsson wrote:
I&M bank making an acquisition in Uganda.
They are acquiring 90% of the issued share capital of Orient Bank Limited,Uganda


Quote:
Orient bank launched its services in Uganda in 1993.The bank then acquired Trans-Africa Bank Limited in 2002, which had been declared insolvent by Bank of Uganda.

Through its history, the bank has gone through several ownerships by different entities and individuals. The last acquisition was by the London-headquartered private equity fund 8 Miles, founded by musician Bob Geldof, who acquired a 42 per cent stake in Orient Bank (U) Ltd in 2015. The founders of the bank, led by Ketan Morjaria, hold 49 per cent in the bank.

The remaining shareholding is by individuals Alemayehu Fisseha, the owner of Prime General Supplies, and the Ugandan-based Chinese manufacturer and property developer, Zhong Shuang Quan – each with 4.5 per cent.

In 2019, the bank struggled to make money, turning in a loss of Shs 1 billion from a Shs 5.6 billion profit registered in 2018. Its assets grew to Shs 814 billion in 2019 from Shs 749 billion in 2018, according to the official published financial results.

LINK

The bank seems to operating around 15 branches but some are being merged due to covid. Let's wait and see how many branches I&M will have if the deal goes through and whether they can make profits.
Seems I&M will have to put some cash into it as well so the total investment will be higher than just the purchase price.


An article in The East African states the deal is estimated at $23.4M (Ksh2.34B).
Ericsson
#149 Posted : Friday, August 28, 2020 9:03:29 PM
Rank: Elder


Joined: 12/4/2009
Posts: 8,849
Location: NAIROBI
I&M bank Rwanda registers profit of $2
3mn in first half of 2020
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
VituVingiSana
#150 Posted : Sunday, August 30, 2020 9:04:35 AM
Rank: Chief


Joined: 1/3/2007
Posts: 17,201
Location: Nairobi
kmucheke wrote:
VituVingiSana wrote:
kmucheke wrote:
Ericsson wrote:
I&M bank making an acquisition in Uganda.
They are acquiring 90% of the issued share capital of Orient Bank Limited,Uganda


Quote:
Orient bank launched its services in Uganda in 1993.The bank then acquired Trans-Africa Bank Limited in 2002, which had been declared insolvent by Bank of Uganda.

Through its history, the bank has gone through several ownerships by different entities and individuals. The last acquisition was by the London-headquartered private equity fund 8 Miles, founded by musician Bob Geldof, who acquired a 42 per cent stake in Orient Bank (U) Ltd in 2015. The founders of the bank, led by Ketan Morjaria, hold 49 per cent in the bank.

The remaining shareholding is by individuals Alemayehu Fisseha, the owner of Prime General Supplies, and the Ugandan-based Chinese manufacturer and property developer, Zhong Shuang Quan – each with 4.5 per cent.

In 2019, the bank struggled to make money, turning in a loss of Shs 1 billion from a Shs 5.6 billion profit registered in 2018. Its assets grew to Shs 814 billion in 2019 from Shs 749 billion in 2018, according to the official published financial results.

LINK

The bank seems to operating around 15 branches but some are being merged due to covid. Let's wait and see how many branches I&M will have if the deal goes through and whether they can make profits.
Seems I&M will have to put some cash into it as well so the total investment will be higher than just the purchase price.


An article in The East African states the deal is estimated at $23.4M (Ksh2.34B).
Not a huge stretch for I&M given its profitability even during COVID. 1H 2020 PAT 3.2bn. Assuming this acquisition has been in the works for at least 1 year, the cash may already have been earmarked.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Ericsson
#151 Posted : Sunday, August 30, 2020 10:52:02 AM
Rank: Elder


Joined: 12/4/2009
Posts: 8,849
Location: NAIROBI
VituVingiSana wrote:
kmucheke wrote:
VituVingiSana wrote:
kmucheke wrote:
Ericsson wrote:
I&M bank making an acquisition in Uganda.
They are acquiring 90% of the issued share capital of Orient Bank Limited,Uganda


Quote:
Orient bank launched its services in Uganda in 1993.The bank then acquired Trans-Africa Bank Limited in 2002, which had been declared insolvent by Bank of Uganda.

Through its history, the bank has gone through several ownerships by different entities and individuals. The last acquisition was by the London-headquartered private equity fund 8 Miles, founded by musician Bob Geldof, who acquired a 42 per cent stake in Orient Bank (U) Ltd in 2015. The founders of the bank, led by Ketan Morjaria, hold 49 per cent in the bank.

The remaining shareholding is by individuals Alemayehu Fisseha, the owner of Prime General Supplies, and the Ugandan-based Chinese manufacturer and property developer, Zhong Shuang Quan – each with 4.5 per cent.

In 2019, the bank struggled to make money, turning in a loss of Shs 1 billion from a Shs 5.6 billion profit registered in 2018. Its assets grew to Shs 814 billion in 2019 from Shs 749 billion in 2018, according to the official published financial results.

LINK

The bank seems to operating around 15 branches but some are being merged due to covid. Let's wait and see how many branches I&M will have if the deal goes through and whether they can make profits.
Seems I&M will have to put some cash into it as well so the total investment will be higher than just the purchase price.


An article in The East African states the deal is estimated at $23.4M (Ksh2.34B).
Not a huge stretch for I&M given its profitability even during COVID. 1H 2020 PAT 3.2bn. Assuming this acquisition has been in the works for at least 1 year, the cash may already have been earmarked.


They will reduce dividend payout to raise the cash.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
VituVingiSana
#152 Posted : Sunday, August 30, 2020 11:39:54 PM
Rank: Chief


Joined: 1/3/2007
Posts: 17,201
Location: Nairobi
Ericsson wrote:
VituVingiSana wrote:
kmucheke wrote:
VituVingiSana wrote:
kmucheke wrote:
Ericsson wrote:
I&M bank making an acquisition in Uganda.
They are acquiring 90% of the issued share capital of Orient Bank Limited,Uganda


Quote:
Orient bank launched its services in Uganda in 1993.The bank then acquired Trans-Africa Bank Limited in 2002, which had been declared insolvent by Bank of Uganda.

Through its history, the bank has gone through several ownerships by different entities and individuals. The last acquisition was by the London-headquartered private equity fund 8 Miles, founded by musician Bob Geldof, who acquired a 42 per cent stake in Orient Bank (U) Ltd in 2015. The founders of the bank, led by Ketan Morjaria, hold 49 per cent in the bank.

The remaining shareholding is by individuals Alemayehu Fisseha, the owner of Prime General Supplies, and the Ugandan-based Chinese manufacturer and property developer, Zhong Shuang Quan – each with 4.5 per cent.

In 2019, the bank struggled to make money, turning in a loss of Shs 1 billion from a Shs 5.6 billion profit registered in 2018. Its assets grew to Shs 814 billion in 2019 from Shs 749 billion in 2018, according to the official published financial results.

LINK

The bank seems to operating around 15 branches but some are being merged due to covid. Let's wait and see how many branches I&M will have if the deal goes through and whether they can make profits.
Seems I&M will have to put some cash into it as well so the total investment will be higher than just the purchase price.


An article in The East African states the deal is estimated at $23.4M (Ksh2.34B).
Not a huge stretch for I&M given its profitability even during COVID. 1H 2020 PAT 3.2bn. Assuming this acquisition has been in the works for at least 1 year, the cash may already have been earmarked.


They will reduce dividend payout to raise the cash.

Not true. CBK must approve such a deal and would expect I&M to have the cash ready TODAY versus a vague "will reduce dividend payout to raise the cash".

As is, I&M had a low dividend payout ratio (20-25%) but given CBK's reluctance on banks paying dividends for FY2020, I have taken a zero/low dividend into account.

High dividend payout listed banks were KCB, SCBK and ABSA. Stanbic wasn't too bad. Perhaps others too.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
VituVingiSana
#153 Posted : Sunday, August 30, 2020 11:47:44 PM
Rank: Chief


Joined: 1/3/2007
Posts: 17,201
Location: Nairobi
And CBK must have known about the ongoing discussions between I&M and Orient. If there was any doubt on CBK's end about the cash available (to I&M) to buy Orient then it is unlikely the deal would have been announced. Njoroge doesn't play games.

To the best of my recollection, I&M pays just one dividend/year so there's still 8 months before it needs to release results and make an announcement. The FY2020 AGM has to be held for a declared dividend to be approved so add another 2-3 months.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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