British International Investment (BII) to Sell 10.13% Stake in I&M Group to East Africa Growth Holding

UK development finance institution British International Investment (BII) has entered into an agreement to sell its 10.13 percent stake in I&M Group to East Africa Growth Holding. The buyer, represented by Africinvest Fund IV LLC, Africinvest IV Netherlands C.V., and AfricInvest Financial Inclusion Vehicle LLC, is an investment vehicle established for this purpose.

Key Points:

1. Transaction Details:
   • While the financial terms of the deal have not been disclosed, the transaction is valued at least at Sh2.9 billion based on the valuation of BII’s stake on the Nairobi Securities Exchange. The completion of the sale is subject to customary conditions, including regulatory approvals in Kenya and other relevant jurisdictions.
2. Buyer Profile:
   • The buyer, East Africa Growth Holding, is a related party to British International Investment and operates as an investment vehicle backed by Africinvest Fund IV. This pan-African fund is focused on fostering the growth of African enterprises, with investments in mid-cap and growth-oriented companies across various sectors including finance, agribusiness, and logistics.
3. BII’s Initial Investment:
   • British International Investment originally acquired a 10.68 percent equity stake in I&M Group in April 2016 when it was known as the CDC Group. This investment demonstrated BII’s commitment to supporting lending to small and medium-sized enterprises in East Africa.
4. Shareholding Structure:
   • As per the latest annual report from I&M Holdings, BII was the fourth-largest shareholder in the lending group. The top three shareholders are Minard Holdings Limited (21.6 percent), Tecoma Limited (18.4 percent), and Ziyungi Limited (17.8 percent).
5. I&M Holdings Profile:
   • I&M Holdings Plc traces its origins back to 1950 when it was incorporated as City Trust Limited. It established I&M Bank in 1974, initially as a financial services company. Today, the group has a regional presence in Rwanda, Tanzania, Uganda, and Mauritius.

Conclusion: The sale of British International Investment’s stake in I&M Group to East Africa Growth Holding represents a strategic move in the evolving landscape of regional investments. This transaction not only underlines the attractiveness of the East African market but also highlights the continued interest of international entities in supporting the growth of enterprises across the continent. As the deal progresses through regulatory approvals, it will be interesting to see how this development contributes to the broader financial landscape in the region.

BDA