Financial service provider I&M Holdings Limited have approved the firm’s business expansion plan geared on facilitating business growth.
In a unanimous decision passed at the firm’s 64th Annual General Meeting (AGM) the shareholders approved an ordinary resolution setting the pace for the acquisition of a dedicated corporate advisory firm, Burbidge Capital Limited, to boost the Group’s market delivery capacity.
The purchase of a controlling stake in Burbidge Capital by I&M Group, will provide a platform for the firm to enhance its corporate finance capacity in the local market.
Speaking at the AGM, I&M Holdings Chairperson, Mr. Daniel Ndonye, expressed confidence on the country’s economic outlook, despite an expected slowdown in credit uptake ahead of the general elections in Kenya next year.
To enhance shareholder value, Ndonye, confirmed that the Group is pursuing several strategic projects geared at placing the firm in a good position to harness growth opportunities locally and in the region.
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Established in 2010 by veteran investment banker Edward Burbidge, the east Africa market focused Burbidge Capital is an investment advisory firm focused on creating long term advisory relationships & solutions across Eastern Africa. It is regulated by the Capital Markets Authority (CMA) and is licensed as a Nominated Advisor (NomAd) by the Nairobi Securities Exchange (NSE) for the Growth Enterprise Market Segment (GEMS).
During the AGM, Shareholders approved a dividend payment of Kshs 3.50 per share amounting to KShs 1,373,267,137 for the year ended 31st December 2015, representing a 21% earnings per share (EPS) growth up from Kshs 2.90 paid out the previous year.
The shareholders also passed a special resolution allowing for the amendment of the firm’s Articles of Association to reflect the proposed entry of CDC Group as a major investor in I&M Holdings.
The entry of the CDC Group plc, the UK’s development finance institution, through a 10.68 per cent equity stake purchase in I&M Holdings has been described as strategically underlining CDC’s commitment to supporting lending to small and medium sized enterprises (SMEs) in East Africa.
This acquisition by CDC, to be made through the purchase of equity stakes earlier held by DEG and Proparco, (the German and French development finance institutions, respectively) will make CDC a significant shareholder in I&M Holdings.
The completion of the transaction is conditional upon receipt of regulatory approvals from several authorities in the region and is expected to be concluded in the next couple of months.
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