SBM Holdings has been given the green light to acquire Chase Bank after the Central Bank of Kenya accepted 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 from Chase Bank.
This will among other things ensure transfer of 75 percent of the value of deposits currently under moratorium as well as the transfer of the operational Chase Bank staff and branches.
The Central Bank of Kenya has been looking for a strategic investor to take over Chase Bank with the regulator in May last year noting that 12 applicants among them local and foreign banks had expressed interest in the bank.
Having received a no-binding offer from SBM Holdings in October last year with respect to acquisition of Chase Bank, both the CBK and Kenya Deposit Insurance Corporation have instead accepted a binding offer from the Mauritius based lender.
The acceptance of the offer gives SBM Holdings the green light to acquire Chase Bank though the offer still needs to be executed and operationalized.
The deal that includes acquisition of certain assets and matched liabilities, will ensure transfer of 75 percent of the value of deposits currently under moratorium as well as transfer of the operational Chase Bank staff and branches.
Non-moratorium depositors will however continue to have full unrestricted access to their funds.
CBK and KDIC plan to meet Chase Bank depositors on Wednesday and Thursday next 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 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.
Chase Bank was placed under receivership by the CBK in 2016 after failing to meet its obligations.