SBM Holdings Ltd (SBM), the third largest company listed on the Stock Exchange of Mauritius has Completed the acquisition of Chase Bank Kenya.
The Central Bank of Kenya (CBK) and the Kenya Deposit insurance corporation (KDIC) in a joint statement on Friday announced “The receipt and acceptance of a Binding offer from SBM Holdings Limited with respect to Chase Bank (Kenya) limited (in Receivership).”
“The Binding Offer represents a viable proposal for the substantial resolution of CBLR, for the benefit of depositors and strengthening of the Kenyan financial sector.”
In October, SBM Holdings expressed an interest through a non-binding offer which included the acquisition of certain assets and matched liabilities from CBLR.
According to CBK and KDIC “The offer still needs to be executed and operationalised, and it is expected that this transaction will inter alia ensure the transfer of 75 percent of the value of deposits currently under moratorium and the transfer of staff and branches of the existing Chase Bank operations.”
Therefore, CBK and KDIC plan to meet Chase Bank depositors next week Wednesday and Thursday.
Consequently, United Bank Limited (UBL) of Dubai and its London-registered subsidiary United National Bank Limited (UNBL) have gone to court to stop SBM Holdings from acquiring Chase Bank over a KSh1.1 billion debt. according to Business Daily.
Chase Bank became the first bank in Kenya to go into receivership and revived within three weeks.
The central bank of Kenya blamed social media for the bank run.
“Chase Bank Limited experienced liquidity difficulties, following inaccurate social media reports and the stepping aside of two of its directors. Consequently, it was not able to meet its financial obligations on April 6, 2016,” Central Bank of Kenya had said in a statement.
According to its financial statements Chase Bank had Ksh 26.6 Billion on liabilities as of December 31, 2015, compared with KSh 13.2 billion in 2014. Loans to employees and directors in 2016 amounted to KSh13.6 billion versus the Ksh3.24 billion shillings reported in March.