KENYA’S CENTRAL BANK APPROVES BID BY MAURITIUS BANK TO ACQUIRE CHASE BANK

NAIROBI, SBM Holdings from Mauritius has been given the green light by the Central Bank of Kenya (CBK) to acquire Chase Bank after accepting a binding offer from the Mauritius-based lender.

The offer, which still needs to be executed and operationalized, includes the acquisition of certain assets and matched liabilities of Chase Bank, which will, among other things, ensure the transfer of 75 per cent of the value of deposits currently under moratorium as well as the transfer of the operational Chase Bank staff and branches.

The central bank has been looking for a strategic investor to take over Chase Bank after it announced in May last year that 12 local and foreign banks had expressed interest in Chase Bank.

Having received a non-binding offer from SBM Holdings in October last year with respect to acquisition of Chase Bank, both the CBK and Kenya Deposit Insurance Corporation accepted a binding offer from the Mauritius-based lender, giving it the green light to acquire Chase Bank.

Non-moratorium depositors will continue to have full unrestricted access to their funds.

The CBK and KDIC plan to meet Chase Bank depositors on Wednesday and Thursday this week with regards to the takeover.

The go-ahead comes even as a case by two foreign banks is still at the High Court seeking to stop Mauritius SBM Holdings from acquiring the troubled lender over a 1.1 billion shillings debt owed by Chase Bank to them.

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

Source: NAM NEWS NETWORK