Home SK - Stocks, Property, Investment Chamas - Investment Groups BIZ - Small Business Soko - Market Wazua Life About Wazua
SIGN IN REGISTER
Monday, Dec 6, 2021
Investor
We’re investing funds for profit. Join us and wazua!
LATEST DISCUSSIONS
MTN Uganda IPO..Whats cutting over there?? [23]
Kenya Airways...why ignore.. [15292]
KENGEN 2021-2025 [47]
Exchange Bar: Results forecast [2394]
KCB 2018 and Beyond [589]
Britam 2021-2025 [12]
Mumias Sugar huge demand [2912]
Safaricom 2019/2020 [676]
Centum FY2022 - FY2026 [69]
Treasury Bills and Bonds [1579]
Nuisance Neighbor [7]
Kenya Economy Watch [2609]
KenyaRe FY19 - FY23 (Both Inclusive) [731]
Housing Finance: HFCK a diamond in the rough [2150]
Uchumi - A value play? [570]
 
Forum Jump








Welcome Guest Search | Active Topics | Log In | Register

9 Pages«<789
Eye on I&M ...
kmucheke
#161 Posted : Tuesday, May 04, 2021 8:10:57 PM
Rank: Member


Joined: 3/16/2019
Posts: 279
VituVingiSana wrote:
I&M closes the acquisition of Orient Bank UG on 30 April


Yes, the acquisition is complete now.
LINK
Quote:
With the acquisition, I&M takes over loans worth Ushs 255b, and customer deposits worth Ushs 603b held by Orient at its 14 branches countrywide. The bank also has a customer base of 70,000 and a staff component of 340 employees, according to Kumaran Pather, Orient Bank CEO.
mufasa
#162 Posted : Tuesday, May 11, 2021 9:59:22 AM
Rank: Member


Joined: 4/15/2008
Posts: 185
Do it today! Tomorrow is promise to no-one.
Ericsson
#163 Posted : Friday, May 21, 2021 7:51:57 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,071
Location: NAIROBI
https://kenyanwallstreet...illion-to-im-bank-kenya/
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#164 Posted : Thursday, September 02, 2021 2:44:50 PM
Rank: Elder


Joined: 12/4/2009
Posts: 10,071
Location: NAIROBI
kmucheke wrote:
VituVingiSana wrote:
I&M closes the acquisition of Orient Bank UG on 30 April


Yes, the acquisition is complete now.
LINK
Quote:
With the acquisition, I&M takes over loans worth Ushs 255b, and customer deposits worth Ushs 603b held by Orient at its 14 branches countrywide. The bank also has a customer base of 70,000 and a staff component of 340 employees, according to Kumaran Pather, Orient Bank CEO.



I&M cost of buying Uganda bank rises to Sh4.1 billion
I&M Group has spent Sh4.1 billion to acquire a 90 percent stake in Uganda’s Orient Bank Limited, with the cost rising from the initial estimate of Sh3.6 billion.

The Nairobi Securities Exchange-listed lender says this is after the base price was adjusted to take into account multiple factors.

These include appreciation of the Ugandan shilling against the US dollar, integration support, the short-term financial performance of the subsidiary and the sale of its property.

I&M also agreed to meet the cost of post-completion integration support and to factor in Orient Bank’s net loss or net profit for the period from January 1 until completion.

Sale of the subsidiary’s property in Kampala, Orient Plaza, also weighs in on the transaction price.

I&M made a net profit of Sh284.4 million in Uganda in the half year ended June, up from Sh1.4 million the year before, reflecting the impact of the Orient Bank acquisition.

I&M said the deal has given it access to additional loans worth Sh7.7 billion, deposits (Sh18.2 billion), 70,000 customers, 14 branches and 22 ATMs.

https://www.businessdail...to-sh4-1-billion-3534724
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
VituVingiSana
#165 Posted : Friday, September 03, 2021 5:41:41 AM
Rank: Chief


Joined: 1/3/2007
Posts: 17,637
Location: Nairobi
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.

Did I&M reduce the FY2020 vs FY2019 dividend to raise the cash?
What was I&M's FY2019 vs FY2020 2.25/share dividend?

With 1H2021 I&M Holdings PAT of 4.25bn, it can pay 4.1bn for Orient.
IMH can also match 1.125/share (after 1:1 Bonus) dividend, if 2H is similar to 1H, and keep some 2bn as retained earnings IF there is no other major acquisition or purchase/funding of additional shares in subsidiaries. .
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
littledove
#166 Posted : Friday, September 03, 2021 7:44:08 AM
Rank: Member


Joined: 7/1/2014
Posts: 841
Location: sky
Ericsson wrote:
kmucheke wrote:
[quote=VituVingiSana]I&M closes the acquisition of Orient Bank UG on 30 April


Yes, the acquisition is complete now.
LINK
Quote:
With the acquisition, I&M takes over loans worth Ushs 255b, and customer deposits worth Ushs 603b held by Orient at its 14 branches countrywide. The bank also has a customer base of 70,000 and a staff component of 340 employees, according to Kumaran Pather, Orient Bank CEO.



I&M cost of buying Uganda bank rises to Sh4.1 billion
I&M Group has spent Sh4.1 billion to acquire a 90 percent stake in Uganda’s Orient Bank Limited, with the cost rising from the initial estimate of Sh3.6 billion.

The Nairobi Securities Exchange-listed lender says this is after the base price was adjusted to take into account multiple factors.

These include appreciation of the Ugandan shilling against the US dollar, integration support, the short-term financial performance of the subsidiary and the sale of its property.

I&M also agreed to meet the cost of post-completion integration support and to factor in Orient Bank’s net loss or net profit for the period from January 1 until completion.

Sale of the subsidiary’s property in Kampala, Orient Plaza, also weighs in on the transaction price.

I&M made a net profit of Sh284.4 million in Uganda in the half year ended June, up from Sh1.4 million the year before, reflecting the impact of the Orient Bank acquisition.

I&M said the deal has given it access to additional loans worth Sh7.7 billion, deposits (Sh18.2 billion), 70,000 customers, 14 branches and 22 ATMs.

https://www.businessdail...o-sh4-1-billion-3534724[/quote]

Are those figures by business daily accurate? if they are is the deal worth 4billion plus?
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
Ericsson
#167 Posted : Friday, September 03, 2021 2:18:14 PM
Rank: Elder


Joined: 12/4/2009
Posts: 10,071
Location: NAIROBI
littledove wrote:
Ericsson wrote:
kmucheke wrote:
[quote=VituVingiSana]I&M closes the acquisition of Orient Bank UG on 30 April


Yes, the acquisition is complete now.
LINK
Quote:
With the acquisition, I&M takes over loans worth Ushs 255b, and customer deposits worth Ushs 603b held by Orient at its 14 branches countrywide. The bank also has a customer base of 70,000 and a staff component of 340 employees, according to Kumaran Pather, Orient Bank CEO.



I&M cost of buying Uganda bank rises to Sh4.1 billion
I&M Group has spent Sh4.1 billion to acquire a 90 percent stake in Uganda’s Orient Bank Limited, with the cost rising from the initial estimate of Sh3.6 billion.

The Nairobi Securities Exchange-listed lender says this is after the base price was adjusted to take into account multiple factors.

These include appreciation of the Ugandan shilling against the US dollar, integration support, the short-term financial performance of the subsidiary and the sale of its property.

I&M also agreed to meet the cost of post-completion integration support and to factor in Orient Bank’s net loss or net profit for the period from January 1 until completion.

Sale of the subsidiary’s property in Kampala, Orient Plaza, also weighs in on the transaction price.

I&M made a net profit of Sh284.4 million in Uganda in the half year ended June, up from Sh1.4 million the year before, reflecting the impact of the Orient Bank acquisition.

I&M said the deal has given it access to additional loans worth Sh7.7 billion, deposits (Sh18.2 billion), 70,000 customers, 14 branches and 22 ATMs.

https://www.businessdail...o-sh4-1-billion-3534724[/quote]

Are those figures by business daily accurate? if they are is the deal worth 4billion plus?

They are very accurate.
You can confirm with the annual report using the link below

https://www.orient-bank.com/annual-reports/
Use exchange rate
1ksh=34 Uganda shillings
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
VituVingiSana
#168 Posted : Monday, September 13, 2021 9:47:55 AM
Rank: Chief


Joined: 1/3/2007
Posts: 17,637
Location: Nairobi
littledove wrote:
Ericsson wrote:
kmucheke wrote:
[quote=VituVingiSana]I&M closes the acquisition of Orient Bank UG on 30 April


Yes, the acquisition is complete now.
LINK
Quote:
With the acquisition, I&M takes over loans worth Ushs 255b, and customer deposits worth Ushs 603b held by Orient at its 14 branches countrywide. The bank also has a customer base of 70,000 and a staff component of 340 employees, according to Kumaran Pather, Orient Bank CEO.



I&M cost of buying Uganda bank rises to Sh4.1 billion
I&M Group has spent Sh4.1 billion to acquire a 90 percent stake in Uganda’s Orient Bank Limited, with the cost rising from the initial estimate of Sh3.6 billion.

The Nairobi Securities Exchange-listed lender says this is after the base price was adjusted to take into account multiple factors.

These include appreciation of the Ugandan shilling against the US dollar, integration support, the short-term financial performance of the subsidiary and the sale of its property.

I&M also agreed to meet the cost of post-completion integration support and to factor in Orient Bank’s net loss or net profit for the period from January 1 until completion.

Sale of the subsidiary’s property in Kampala, Orient Plaza, also weighs in on the transaction price.

I&M made a net profit of Sh284.4 million in Uganda in the half year ended June, up from Sh1.4 million the year before, reflecting the impact of the Orient Bank acquisition.

I&M said the deal has given it access to additional loans worth Sh7.7 billion, deposits (Sh18.2 billion), 70,000 customers, 14 branches and 22 ATMs.

https://www.businessdail...o-sh4-1-billion-3534724[/quote]

Are those figures by business daily accurate? if they are is the deal worth 4billion plus?
That's not an easy question to answer!

I&M is paying 1.1x BV which is a much higher premium than many KE banks are trading at including I&M (0.6x BV)
The 4.1bn that I&M is paying = approx 3.7bn of equity.

Yes, the loans and deposits seem rather low but perhaps that's where I&M can help Orient i.e. new products, new systems, new customers, etc that can profitably boost the topline. It also seems Orient was cutting back on loans, making provisions and cleaning up their books, before the takeover, so the 7.7bn in loans may be clean.

I&M has introduced WhatsApp banking, and a blockchain product, in Rwanda. I think - requires confirmation - that mobile loans will be introduced in Rwanda and Tanzania. Once these are tried and tested then Uganda could a potential market.

I&M's existing clients with businesses in RW, TZ and KE may look to use Orient in UG.
Orient's existing clients may choose I&M in RW, TZ and KE.

RW has been profitable for I&M. Mauritius is up and down. TZ is performing poorly. Where will UG end up?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Ericsson
#169 Posted : Monday, September 13, 2021 11:14:13 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,071
Location: NAIROBI
VituVingiSana wrote:
littledove wrote:
Ericsson wrote:
kmucheke wrote:
[quote=VituVingiSana]I&M closes the acquisition of Orient Bank UG on 30 April


Yes, the acquisition is complete now.
LINK
Quote:
With the acquisition, I&M takes over loans worth Ushs 255b, and customer deposits worth Ushs 603b held by Orient at its 14 branches countrywide. The bank also has a customer base of 70,000 and a staff component of 340 employees, according to Kumaran Pather, Orient Bank CEO.



I&M cost of buying Uganda bank rises to Sh4.1 billion
I&M Group has spent Sh4.1 billion to acquire a 90 percent stake in Uganda’s Orient Bank Limited, with the cost rising from the initial estimate of Sh3.6 billion.

The Nairobi Securities Exchange-listed lender says this is after the base price was adjusted to take into account multiple factors.

These include appreciation of the Ugandan shilling against the US dollar, integration support, the short-term financial performance of the subsidiary and the sale of its property.

I&M also agreed to meet the cost of post-completion integration support and to factor in Orient Bank’s net loss or net profit for the period from January 1 until completion.

Sale of the subsidiary’s property in Kampala, Orient Plaza, also weighs in on the transaction price.

I&M made a net profit of Sh284.4 million in Uganda in the half year ended June, up from Sh1.4 million the year before, reflecting the impact of the Orient Bank acquisition.

I&M said the deal has given it access to additional loans worth Sh7.7 billion, deposits (Sh18.2 billion), 70,000 customers, 14 branches and 22 ATMs.

https://www.businessdail...o-sh4-1-billion-3534724[/quote]

Are those figures by business daily accurate? if they are is the deal worth 4billion plus?
That's not an easy question to answer!

I&M is paying 1.1x BV which is a much higher premium than many KE banks are trading at including I&M (0.6x BV)
The 4.1bn that I&M is paying = approx 3.7bn of equity.

Yes, the loans and deposits seem rather low but perhaps that's where I&M can help Orient i.e. new products, new systems, new customers, etc that can profitably boost the topline. It also seems Orient was cutting back on loans, making provisions and cleaning up their books, before the takeover, so the 7.7bn in loans may be clean.

I&M has introduced WhatsApp banking, and a blockchain product, in Rwanda. I think - requires confirmation - that mobile loans will be introduced in Rwanda and Tanzania. Once these are tried and tested then Uganda could a potential market.

I&M's existing clients with businesses in RW, TZ and KE may look to use Orient in UG.
Orient's existing clients may choose I&M in RW, TZ and KE.

RW has been profitable for I&M. Mauritius is up and down. TZ is performing poorly. Where will UG end up?



https://citizentv.co.ke/...l-orient-bank-13099209/

I&M injects ksh.550 million in Orient bank to firm up its capital
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Users browsing this topic
Guest
9 Pages«<789
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Home | . .. Investor | .. . Groups | .. . SME | . . . Market | .. . Club SK | . ..... About Wazua | . .. Search | . ..Sitemap | . ..Support | . ..Disclaimer | . ..Privacy Policy | . ..Terms of Use | . .. Contact Us
Copyright © 2021 Wazua.co.ke. All Rights Reserved.