I&M Bank Concludes Acquisition Deal with British Firm CDC

DC agreed to fully buy out German and French development finance institutions, DEG and Proparco, who hold a combined 10.68 per cent stake setting the stage to become the fourth largest owner of I&M.“Further to the cautionary announcement on 18th April 2016 in respect of the proposed acquisition of approximately 10.68 percent of the issues ordinary shares by CDC Group Plc, I&M Holdings is pleased to inform its shareholders and the investing public that all the conditions precedent to completion of the acquisition of the sale shares have been fulfilled and the acquisition of the sale shares was completed on 30 September 2016,” said I&M in a regulatory notice.

The sale to the UK government-owned agency was done through a private transfer rather than in the open market at the Nairobi Securities Exchange (NSE). The deal was subject to approval from Kenyan and Tanzanian regulators.DEG and Proparco’s exit also comes at a time when there is expectation of an increase in equity buys in Kenyan banks due to a freeze on licensing new lenders and expected consolidation in the sector following the collapse of Chase Bank, Imperial Bank and Dubai Bank.

Equities

Market activity dipped on Wednesday as all the indicators closed the day in the red. The NSE 20 Share index dropped 12.46 points to settle at 3282.64 points while the NASI shed 0.44 points to end the day at 137.71 points. The NSE 25 Share index was down by 23.50 points to 3660.56 points. Market capitalization decreased to KES 1983.260 billion from KES 1989.537 billion before whilst equity turnover declined to KES 0.56 billion from KES 0.68 billion previously. The number of shares traded increased to 28.89 million from 24.96 million yesterday.

Currencies

The Kenyan shilling remained marginally changed on Tuesday as dollar demand from oil importers was matched by foreign exchange inflows from horticulture exporters and non-governmental organisations. The local currency gained against the Sterling following continued uncertainty on when Britain will exit the European Union. Some investors, despite the recent hints from Boris Johnson that Article 50 will be enacted early in 2017, believed that there would be further hints of delays which would allow the Pound some respite. The sudden realization that this was not the case caused the Pound sell-off which has undercut Sterling’s buying power against all major currencies.

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