Mauritius-based EAGH to acquire 86.5 million shares in I&M Group for $32.4 million

Key Points

• EAGH is acquiring 86.5 million new shares in I&M Group for KSh4.2 billion ($32.4 million), raising its stake to 4.97%.
• The latest deal follows EAGH’s March 2024 acquisition of a 10.13% stake from British International Investment for Ksh6.5 billion ($50.3 million).
• I&M Group plans to double its retail banking footprint in Kenya by 2026, targeting 100 branches through its iMara 3.0 strategy.

East Africa Growth Holding (EAGH), a Mauritius-based investment firm, is set to acquire 86.5 million new shares in I&M Group, a prominent East African financial conglomerate founded by Kenyan banker Suresh Bhagwanji Shah. The transaction, valued at Ksh4.2 billion ($32.4 million), marks a significant shift in the region’s banking landscape.

In a statement posted on I&M Group’s website, the company confirmed that the acquisition would increase EAGH’s stake to 4.97 percent of its expanded share capital. EAGH’s purchase price of Ksh48.42 ($0.37) per share reflects its confidence in I&M’s growth potential. The group assured shareholders that further details would follow pending the completion of the deal.

EAGH strengthens influence with second acquisition

This deal builds on EAGH’s earlier acquisition of a 10.13 percent stake in I&M Group in March 2024. That transaction, worth KSh6.5 billion ($50.3 million), involved buying shares from British International Investment (BII), a UK-based development finance institution.

With that initial stake, EAGH secured indirect joint control over I&M Group, including a seat on the board and a voice in strategic decisions. Its current acquisition is subject to regulatory and shareholder approvals, along with other customary closing conditions.

I&M Group’s strategic growth

I&M Group, founded in 1974 by Kenyan entrepreneur Suresh Bhagwanji Shah, operates banks in Kenya, Tanzania, and Rwanda and has a joint venture in Mauritius. Shah, who holds a 10.58 percent stake in the company, played a key role in transforming I&M into a leading banking group in the region.

Beyond banking, I&M has ventured into manufacturing. It recently partnered with Norfund to enhance operations at Kim-Fay, a hygiene product manufacturer, by building a new facility in Tatu City’s Special Economic Zone near Nairobi.

I&M is also pursuing an ambitious growth strategy in retail banking. Through its iMara 3.0 initiative, the bank aims to double its retail presence in Kenya, expanding its branch network to 100 by 2026 from the current 50. The plan involves opening at least 17 branches annually to bolster its presence in the competitive East African banking sector.