Exim Bank Tanzania has acquired a 58.6% stake in Imperial Bank Uganda and has officially changed the banks name to Exim Bank Uganda.
This ends the statutory management of the Ugandan bank by the Bank of Uganda.
The fate of Imperial Bank Uganda was in balance and faced the risk of closure after main shareholders, Imperial Bank Kenya, was suspended over unsafe business practices last year.
The Kenyan bank held a 63.5% stake in the Ugandan business but has now sold their stake to the Exim Bank and to the Export Finance Limited (4.9%) at an undisclosed price. Sources say the takeover price is in the region of sh40b.
Mukwano Group still holds a 36.5% stake in the new Exim Bank Uganda under the name 'Amazal Holdings.'
Officials from Exim Bank Tanzania told reporters at the Bank of Uganda meeting that the Exim Bank Uganda already has capital worth sh40b; they said an additional capital injection of sh40b is imminent through a combination of equity (sh30b) and lines of credit $3m (about sh10b).
“Imperial Bank (Uganda) has changed its name to Exim Bank (Uganda). Exim Bank (Uganda) has also appointed a new Board of Directors. Therefore the Bank of Uganda has today, 7th March 2016, ended its statutory management in Imperial Bank (Uganda), now Exim Bank (Uganda) Ltd," Governor Emmanuel Mutebile told reporters at the Bank of Uganda headquarters in Kampala.