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Rank: Elder Joined: 12/4/2009 Posts: 10,798 Location: NAIROBI
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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
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Rank: Chief Joined: 1/3/2007 Posts: 18,265 Location: Nairobi
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Is Credit Bank (Kenya) next? https://www.businessdail...596268-pkpou5/index.htmlGreedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/4/2009 Posts: 10,798 Location: NAIROBI
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[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
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Rank: Chief Joined: 1/3/2007 Posts: 18,265 Location: Nairobi
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Ericsson 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
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Rank: Elder Joined: 12/4/2009 Posts: 10,798 Location: NAIROBI
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VituVingiSana wrote:Ericsson 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
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Rank: Member Joined: 3/16/2019 Posts: 313
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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.
LINKThe 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.
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Rank: Chief Joined: 1/3/2007 Posts: 18,265 Location: Nairobi
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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
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Rank: Member Joined: 3/16/2019 Posts: 313
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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).
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Rank: Elder Joined: 12/4/2009 Posts: 10,798 Location: NAIROBI
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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
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Rank: Chief Joined: 1/3/2007 Posts: 18,265 Location: Nairobi
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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
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Rank: Elder Joined: 12/4/2009 Posts: 10,798 Location: NAIROBI
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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
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Rank: Chief Joined: 1/3/2007 Posts: 18,265 Location: Nairobi
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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
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Rank: Chief Joined: 1/3/2007 Posts: 18,265 Location: Nairobi
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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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Rank: Elder Joined: 12/4/2009 Posts: 10,798 Location: NAIROBI
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I&M 2020 Q1--2.5bn Q2--2bn Q3--2bn Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,798 Location: NAIROBI
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https://mobile.twitter.c...1786237535924227/photo/1Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,798 Location: NAIROBI
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Ericsson wrote:I&M 2020
Q1--2.5bn
Q2--2bn
Q3--2bn Q4--4.45bn Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 7/1/2014 Posts: 926 Location: sky
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Ericsson wrote:Ericsson wrote:I&M 2020
Q1--2.5bn
Q2--2bn
Q3--2bn Q4--4.45bn Board recommends Kes 2.25 dividend per share & bonus issue of 1:1  our time to eat There are only two emotions in the stock market, fear and hope. The problem is, you hope when you should fear and fear when you should hope
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Rank: Elder Joined: 12/4/2009 Posts: 10,798 Location: NAIROBI
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https://www.businessdail...obi-land-dispute-3345502Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,798 Location: NAIROBI
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.. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Chief Joined: 1/3/2007 Posts: 18,265 Location: Nairobi
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I&M closes the acquisition of Orient Bank UG on 30 April Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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