Tuesday 20 February 2018

Mauritius SBM Holdings makes bid for Kenyan bank

Mauritius SBM Holdings makes bid for Kenyan bank
(APA 10/09/17)
Central Bank of Kenya(CBK)

APA-Nairobi (Kenya) - The Central Bank of Kenya(CBK) on Monday disclosed that it has received an offer from Mauritius-based financial Institution (SBM) Holdings acquire to Chase Bank Kenya which is under receivership since April 2016.

CBK said that they have received a non-binding offer which includes the acquisition of certain assets and matched liabilities from Chase Bank.

Last year, CBK placed Chase Bank, under statutory management for a year due to what the regulator termed as unsafe financial conditions.

“Whilst the non-binding offer is still subject to confirmatory due diligence and a binding contract, it is expected that this transaction will inter alia 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 (Kenya) Limited (In Receivership) (CBLR),operations,” said CBK in a statement.

If agreed, it is expected that the proposed transaction will be concluded by the end of 2017.

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, where SBM acquired Fidelity Bank in May 2017.

SBM has a market capitalisation of approximately $700 million, with the Government of Mauritius as a significant shareholder, and total assets in excess of $5 billion.

“Through this potential acquisition, and combined with its other operations in Kenya, SBM will bring its experience and expertise from Mauritius and other markets, to further enhance competitiveness and the resilience of Kenya’s banking sector,” said CBK.

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