Africinvest has successfully acquired a 10.13% stake in I&M Group, totaling 167.53 million shares, from British International Investment (BII). This strategic purchase, valued at Sh6.5 billion, represents a significant premium over the current valuation of the shares at the Nairobi Securities Exchange (NSE).
The deal, initially disclosed in November 2023 and approved by the Competition Authority of Kenya (CAK) in March 2024, highlights Africinvest’s commitment to deepening its investment footprint in the financial sector. This acquisition values I&M Group at Sh64.17 billion, compared to its market capitalization of Sh33.82 billion at the NSE.
BII, formerly known as CDC Group, purchased its stake in I&M back in April 2016. As the fourth-largest shareholder, BII’s exit paves the way for Africinvest to bring in its commercial sustainability and development impact focus, as noted by BII investment director Maximilian Biswanger.
Africinvest’s acquisition, through its special purpose vehicle East Africa Growth Holding, reinforces its existing influence in the I&M Group. Notably, Africinvest previously acquired a 24.76% share in I&M Bank Rwanda in 2019, further cementing its strategic interests in the region.
The CAK’s approval grants East Africa Growth Holding significant rights, including appointing board directors, developing business plans, and making substantial changes to senior management. This effectively grants Africinvest indirect joint control with existing shareholders, shaping the future trajectory of I&M Group.
Since its listing in June 2013, I&M Group has expanded its operations to five countries—Kenya, Tanzania, Rwanda, Uganda, and Mauritius—through subsidiaries, affiliates, and joint ventures. The bank reported a 12.7% increase in net profit to Sh12.62 billion for the year ending December 2023, distributing dividends of Sh2.55 per share to shareholders.
#Africinvest #IMGroup #PrivateEquity #Finance #Investment #Africa #Kenya #Banking #FinancialInclusion #DevelopmentImpact #NSE
