SBM Holdings Limited makes non-binding offer for Chase Bank
By David Indeje / October 9, 2017
SBM Holdings Ltd, the third largest company listed on the Stock Exchange of Mauritius has expressed an interest in a total or partial takeover of Chase bank Kenya after making its bid.
“The non-binding offer includes the acquisition of certain assets and matched liabilities from CBLR. Whilst the non-binding offer is still subject to confirmatory due diligence and a binding contract,” said the Central Bank of Kenya (CBK) and Kenya Deposit Insurance Corporation (KDIC).
“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 the CBK.
CBK and KDIC expects that the transaction will ensure a ‘substantial recovery for depositors currently under moratorium and a transfer of a substantial number of staff and branches of the existing CBLR operations.
“Non-moratorium depositors will continue to have full unrestricted access to their funds,” adds the statement.
If agreed, it is expected that the proposed transaction will be concluded by the end of 2017.
This would end up being the second bank SBM has acquired after Fidelity bank in 2016.
Currently, Central Bank of Kenya (CBK) has frozen the receivership of the Chase Bank pending the hearing of the case, which is set for November 14, 2017.
This means it will continue to be under statutory management by The Central Bank of Kenya (CBK) and Kenya Deposit Insurance Corporation (KDIC).
Chase Bank was one of 3 Kenyan banks that faced closure, the others being Imperial Bank a mid-sized lender, and Dubai Bank, a smaller lender.
“We are of the view that the reopening of Imperial Bank after Chase Bank will improve confidence in the banking industry,” says Cytonn Investments.