Central bank receives SBM due diligence offer

Chase Bank customers after its closure in April 2016

NAIROBI, KENYA: Anxiety is rife among Chase Bank staff ahead of an audit by the State Bank of Mauritius which is set to take over some employees and branches.

Central Bank of Kenya on Monday said it had received the initial offer from SBM setting stage for a due diligence process set for this week.

“The non-binding offer includes the acquisition of certain assets and matched liabilities from Chase Bank Limited in Receivership,” the CBK notice to the public read.

SBM will likely asses the performance of Chase Bank’s 62 branches and Rafiki Microfinance for an analysis of the productivity, profitability and overhead costs and is expected to shut some branches and shed off staff.

The employees are said to be on edge expecting that they may be required to apply for their respective jobs afresh.

Employees would also be keen on salary structures as well as terminal benefits under a new owner.

Once the audit is complete, SBM is expected to table a concrete and binding offer at the end of the month. And CBK expects the acquisition of Chase Bank’s prime assets to be completed by December 31.

The lender listed on the Stock Exchange of Mauritius has a market capitalisation of approximately Sh72.3 billion ($700 million), with the Government of Mauritius as a significant shareholder, and total assets in excess of Sh516.5 billion ($5 billion).