Financial services group, I&M Holdings, has reached a deal to acquire a majority stake in corporate advisory and investment firm Burbidge Capital, it announced on Friday. The growth-hungry firm said the deal inked on Thursday will see it buy 65 per cent stake in Burbidge, just a month after reaching deal to full acquire bottom-tier lender Giro Bank.
“Shareholders of I&M Holdings Limited are advised that the company has on 15th October, 2015, entered into an agreement with shareholders of Burbidge Capital for the sale and purchase of shares comprising 65 per cent of the issued share capital of Burbidge, ” the company said in a statement. “Further details of the transaction will be made available to the shareholders of the company in due course.”
The transaction is subject to the central bank, the Capital Markets Authority, the Competition Authority of Kenya and shareholders.
I&M with operations in Uganda, Tanzania, Rwanda and Mauritius did not give a time line for completing the planned acquisition. It also has interests in insurance and asset management. Burbidge Capital operates Kenya, Uganda and the United Kingdom.
“The proposed transaction may have a material effect on the value of the shares of the company,” I&M said. “The shareholders of the company and the public are accordingly advised to exercise due caution when dealing in the shares of the company.”
I&M shares trading on the Nairobi Securities Exchange on Friday gained 4.17 per cent day-on-day to Sh100 per unit . Burbidge is a nominated advisor for the Growth Enterprise Market Segment at the Nairobi Securities Exchange focused “creating long term advisory relationships and solutions across Eastern Africa”.
The proposed deal by I&M follows the September 7 buyout agreement of Giro Bank, which is also subject to regulatory and shareholders’ approval process.