CBK to meet Chase bank depositors next week after SBM deal

Chase bank customers view a notice pinned on the entrance of the bank's River road branch in Nairobi after it was placed under receivership for one year by CBK (Photo WILLIS AWANDU
NAIROBI, KENYA: Central Bank of Kenya (CBK) has given Mauritian lender SBM Holding greenlight to acquire troubled Chase Bank.

Central Bank and Kenya Deposit Insurance Corporation (KDIC) on Friday said they have received and accepted binding offer from SBM Holdings with respect to Chase Bank (Kenya) Limited (In Receivership) (CBLR).

The Binding Offer accepted on 4 January 2018, includes the acquisition of certain assets and matched liabilities from CBLR. This Binding Offer is similar to the Non-Binding Offer that was discussed with depositors on October 6, 2017.

“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 suspension and the transfer of staff and branches of the existing CBLR operations,” said a statement from the regulator.

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“Non-moratorium depositors will continue to have full unrestricted access to their funds. CBK and KDIC plan to meet CBLR depositors on Wednesday, 10th and Thursday, 11th January 2018.”

SBM is a leading financial services group and the second largest company listed on the Stock Exchange of Mauritius, with a growing international presence currently extending to Madagascar, India and Kenya, where SBM acquired Fidelity Bank in May 2017.

It is expected that the transaction will be concluded upon the execution and operationalisation of the Binding Offer.

Chase Bank was placed under receivership by the Central Bank of Kenya (CBK) in 2016, for a period of 12 months, after it was unable to meet its obligations such as making payments and honouring transactions.

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Central Bank of KenyaSBM HoldingsChase BankFidelity Bank