The Central Bank of Kenya(CBK) on Monday said it had received an offer from Mauritius’ SBM Holdings for the acquisition of certain assets and liabilities belonging to Chase Bank.
Mauritius-based SBM Holdings makes offer for troubled Kenyan bank
Mauritius’ SBM Holdings has given a non-binding offer for the acquisition of certain assets and liabilities belonging to Kenya’s Chase Bank
The Bank said it had received a non-binding offer from SBM setting stage for a due diligence process set for this week.
“Central Bank of Kenya and Kenya Deposit Insurance Corporation announces that they have received a non-binding offer from SBM Holdings Limited with respect to Chase Bank (Kenya) Limited (In Receivership) (CBLR),” the central bank said in a statement.
The non-binding offer is however subject to confirmatory due diligence and a binding contract. If agreed, it is expected that the proposed transaction will be concluded by the end of 2017.
In May, CBK said 12 parties - including local and foreign banks - had expressed interest in the bank. It is also in the same month when SBM Holdings said it was bidding to buy a stake in Chase Bank.
The transaction will also ensure a substantial recovery for depositors currently under moratorium and a transfer of a substantial number of staff and branches of the existing Chase Bank operations.
SBM is a leading financial services group and the third largest company listed on the Stock Exchange of Mauritius, with a growing international presence currently extending to Madagascar, India, and Kenya.
The firm has a market capitalisation of approximately $700 million (Sh72.2 billion), with the Government of Mauritius as a significant shareholder, and total assets in excess of $5 billion (Sh516 billion).
Chase Bank was placed under receivership in April 2016 following a bank run after reports of its liquidity hurdles gained traction online.
KCB later took over management of the bank with a plan to fine-tune the modalities of an acquisition.
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