July 24, 2017

I&M Holdings set to purchase 65 Percent of Burbidge Capital

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By Etaarifa Contributor

I&M Holdings has announced plans to acquire 65 percent of Burbidge Capital Limited. Burbidge Capital is a corporate finance advisory firm based in Kenya and Uganda.

The company focuses on large and mid-sized companies in the region with typical transaction sizes ranging between USD 4 million and USD 150 million. Burbidge Capital was appointed transaction advisory by Flame Tree Group and UK-based Atlas Development and Support Services when both were listing at the Nairobi Securities exchange in 2014.

I&M Holdings also plans to purchase Giro Commercial Bank subject to regulatory approvals.

The transaction value has not been disclosed, however, after acquisition, GCBL; a tier 3 bank will be merged under I&M Bank – a subsidiary of I&M Holdings. GCBL has 7 branches in Kenya; Nairobi, Mombasa and Kisumu. The bank’s customer base is primarily small and medium enterprises and retail.

According to Central Bank of Kenya, GCBL had an overall market share of 0.49 percent as at December 2014. In full year 2014, GCBL had net loans of Ksh. 7.7 Billion; 51.2 percent of its total assets and 6.9 percent of I&M Holdings’ 2014 net loans, with key sectors being real estate (26.3 percent of total loans), wholesale and retail (20 percent of total loans) and building and construction (13.2 percent of total loans).

The bank focuses on short term lending given that 61.2 percent of its loan book has a maturity of less than one year. On capital; core capital stood at Ksh. 2.3 Billion; below the proposed Ksh. 5 Billion by Treasury.

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