I&M Group PLC, a public limited liability company, has recently made a cautionary announcement – in accordance with Regulation 89(2) of the Capital Markets (Public Offers, Listing and Disclosures) Regulations, 2023, outlining a proposed subscription of up to 86,500,000 new ordinary shares by East Africa Growth Holding (EAGH).
With this move, I&M, has taken a decisive step towards strengthening its financial foundation. The entry into a subscription agreement with EAGH, followed an approval from the board of directors, demonstrating the company’s commitment to strategic partnerships and capital infusion.
The proposed transaction involves EAGH subscribing for up to 86,500,000 new ordinary shares, which is expected to comprise approximately 4.97% of the expanded total share capital of the company upon completion. The subscription price has also been set at Sh 48.42 per share.
As with any major corporate action, the completion of this transaction is subject to customary conditions, including the crucial receipt of all relevant regulatory and shareholder approvals.
The group has been forthright in acknowledging the potential material effect this transaction may have on the trading price and value of the company’s shares. Henceforth, it has moved to demonstrate responsible corporate governance, by advising both its shareholders and the public to exercise due caution when dealing in the shares of the company during this period of potential price sensitivity.
This move comes recently after the group posted a profit of Sh6.1 billion in the first half of this year. As the financial landscape continues to evolve, this strategic move by I&M Group PLC may well set the stage for a new chapter in the company’s growth, potentially reinforcing its position in the competitive East African banking sector.
