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.
Orient Bank was founded in 1993 and provides banking, stockbroking and other related financial services to retail, corporate and SME customers in Uganda.
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.