UGANDA – 8 Miles, a Pan-African private equity firm, has agreed to sell its entire 42% holding in Orient Bank, a mid-tier commercial bank in Uganda, to I&M Holdings, a conglomerate comprising banks, an insurance company and investment advisory businesses.
Upon completion of the transaction, it will be the first exit from 8 Miles Fund I and I&M Holdings will own 90% stake, whereas the remaining 10% shareholding will be held by Ketan Morjaria (a founding member of Orient Bank) and Alemayehu Fisseha.
Subject to receipt of regulatory approval, Morjaria will continue to be a member of the Board of Directors of the Bank.
“The proposed transaction is entered into, as part of the Bank’s growth strategy aimed at becoming a leading player in Uganda’s banking industry and part of a strong and growing regional banking group,” according to the Orient Bank’s statement.
With assets of around US$170m, Orient Bank currently has a network of 22 branches in commercial centres across the country and employs over 390 people.
In February 2015, 8 Miles acquired a 42% stake in Orient Bank, alongside a consortium principally comprised of the founders of the bank, by purchasing shares from Keystone Bank, a state-owned Nigerian bank.
8 Miles LLP is regulated by the UK Financial Conduct Authority and the Fund is only open to institutional and qualified investors.
8 Miles is a private equity firm focused exclusively on making investments in African businesses. We invest in established businesses and sectors with strong growth prospects.
Advisers to 8 Miles LLP on this transaction are Clifford Chance and Bowmans Kenya.