I&M bank has fully taken over operations of Giro Commercial Bank after a successful acquisition, ending Giro’s bank status in the country.
The Central Bank announced yesterday that I&M has acquired 100 per cent of Giro Commercial Bank effective February 13, 2017. I&M Bank is a wholly owned banking subsidiary of I&M Holdings, a non-operating holding company, authorized by CBK.
“This acquisition follows CBK’s approval on October 27, 2016, for IMHL to acquire 100 per cent shareholding of GCBL under Section 13 (4) of the Banking Act, and approval by the Cabinet Secretary National Treasury on January 27, 2017,” a statement by CBK read in part.
All Giro stakeholders-depositors, employees, and creditors will continue their relationship with I&M bank, the regulator said.
“Consequently, effective February 13, 2017, GCBL has ceased to be a bank licensed by CBK, and its rights and obligations have been taken up by I&M bank,” CBK said.
I&M Holdings limited first announced in September 2015, that it had reached an agreement to buy out the third tier lender, in a deal that grow its asset base by Sh16.2 billion. The cash and share swap transaction was valued at
(Sh5.7 billion) as of last year.
The transaction was pegged on Sh2.55billion cash payment and Sh21.04million shares at a price of Sh121.05. I&M Bank was licensed in 1996, and was ranked ninth in terms of market share as at December 31, 2016, with 35 branches.