East Africa Growth Holding (EAGH) is poised to acquire up to 86.5 million new ordinary shares of I&M Group following the approval of the subscription agreement by the I&M Board of Directors.
The I&M Group announced on Wednesday that its Board of Directors has approved the entry into a subscription agreement by the Group and EAGH. Under the deal, EAGH agrees to subscribe for up to 86.5 million new ordinary shares at a subscription price of Ksh48.42 per share.
Upon subscription, the new ordinary shares comprise approximately 4.97% of the I&M Group’s total share capital. The transaction will be valued at Ksh4.3 billion.
“Further details of the transaction will be made available to the shareholders of the shareholders in due course,” I&M noted in a statement.
“The completion of the transaction is, however, subject to certain conditions that are customary to transactions of this nature, including receipt of all relevant regulatory and shareholder approval,” the Group added.
I&M Group PLC is listed and traded on the Nairobi Securities Exchange (NSE). It operates in five countries: Kenya, Rwanda, Tanzania, Mauritius, and Uganda.
The traction may have a substantial effect on the trading prices of the company’s shares. Following this significant development, I&M’s shares traded at Ksh29.5 per share on Wednesday morning after closing its last trading day at Ksh25.05.
East Africa Growth Holding is a limited liability company incorporated in Mauritius. It is affiliated with AfricInvest, a private equity investor with investments in more than 200 companies across Africa.
Earlier this year, EAGH acquired 10.13% of the issued share capital of I&M Group PLC from the British International Investment PLC. The transaction saw EAGH acquire indirect joint control over I&M PLC alongside existing shareholders.
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