![[From the left] Thomas Abanga (CEO of Abanga Farms & Food Systems), Selma Ashipala Musavyi (Namibia High Commissioner to Ghana), Dr. Benjamin Sasu (Head of Food Safety), Mrs. Chariti Gbadawo (Director at the Ministry of Foreign Affairs & Regional Integration) ), Prof Bani (Board Chairman, Abanga Farms and Food Systems) and Clarence Zamuee (MEATCO Rep)](https://citibusinessnews.com/wp-content/uploads/2022/07/Abanga-Farms-Food-Systems-Limited-360x180.png)
Bank M of Tanzania, set to enter the Kenyan market this month, is seeking to list at the Dar es Salaam Securities Exchange (DSE) by end-year and later cross-list at the Nairobi Securities Exchange.
It will become the first Tanzanian lender to enter the Kenyan market after 73 per cent of its shareholders under the M Holdings Group agreed to buy 51 per cent stake in Oriental Commercial Bank.
“We will definitely be looking at cross listing which is something that several companies have done” said Bank M CEO designate Jacqueline Woiso.
KCB is the only bank to cross-list on the two markets.
Upon acquisition the bank will operate under the name M-Oriental. The bank’s management believes the lender with an eye on local corporates can crack the more competitive Kenyan market despite its relatively small balance sheet.
“The shareholders who are coming to acquire Oriental are coming with much more capital to boost the bank so it can operate smoothly and get the right trust in the market,” said Ms Woiso.
The deal has the nod of the Competition Authority of Kenya and the Central Bank of Kenya gave the green light in May last year.
Last year Oriental Shareholders approved the allotment of 42,281,893 ordinary shares valued at Sh30 each to M Holdings valuing the deal at Sh1.268 billion.
Ms Woiso declined to comment on the transaction indicating it was still subject to approval but indicating she expected it to be complete month-end.
The bank plans to raise Sh5 billion in the next nine months in two private placements through an initial public offering (IPO) of its shares and a debt issue.
The aggressive capital raising by Bank M is intended to help it open new branches in Tanzania and set up the first mortgage financing company in the country.
Bank M has partnered with World Bank’s investment arm, the International Finance Corporation and Housing Development Finance Corporation of India to set up the mortgage company.
Bank M has operated with five branches since 2011, which are open for 12 hours every day of the week. It plans to open an additional four outlet this year.
Its management seeks to raise Sh1 billion through the two rights issues, with the first targeting high network individuals ongoing and the second scheduled during the third quarter of the year.
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Credit: Business Daily
