Government warns public on mobile loan providers Next Story
Kenya-UK trade takes a hit after ban Previous Story
Today's Paper
You are here  » Home   » Business

KCB makes second Imperial Bank bid with terms under wraps

By Otiato Guguyu | Published Wed, July 25th 2018 at 00:00, Updated July 24th 2018 at 20:48 GMT +3
Imperial Bank Head offices at Westlands [PHOTO:BEVERLYNE MUSILI/Standard]

The Kenya Commercial Bank has submitted a second offer for Imperial Bank after its initial bid was turned down.

The other major bidder - Diamond Trust Bank (DTB) - was said to have pulled out, putting KCB in pole position.

ALSO READ: Kakamega eye winning start today: Battle for tickets to East Africa begins

“The revised proposal was received from KCB while the other bidder has withdrawn from the process,” said Central Bank of Kenya (CBK) in a notice yesterday.

DTB was said to have offered to take up a 30 per cent stake of Imperial Bank’s good books in a deal similar to the one between Chase Bank and State Bank of Mauritius (SBM).

KCB’s offer has remained under wraps.

“CBK and KDIC (Kenya Deposit Insurance Corporation) will engage KCB in discussions aimed at maximising the value for depositors,” said CBK.

Imperial Bank was put in receivership in August 2015 with Sh20 billion liquidity (cash and Treasury bills) and Sh41 billion on its loan book.

Stay informed while on the go by subscribing to the Standard Group SMS service. Text the word 'NEWS' to 22840.

It had customer deposits of about Sh58 billion, part of which was paid out in tranches under KDIC.

Deals involving failed banks have changed the banking landscape. The one involving SBM propelled the bank into a tier two lender just a year after acquiring Fidelity Commercial Bank.

DTB, on the other hand, consolidated operations with Habib Bank and was until the latest development seen as a front-runner in the race to acquire Imperial Bank.

ALSO READ: Headteachers threaten schools closure on Friday

CBK’s refusal of KCB’s initial offer in April shows that the regulator does not fancy curve out deals that offer prospective buyers good books for free.

In fact, SBM had pulled out of the race for Chase Bank when it was initially put up for sale. Some 12 institutions had expressed their interest — three local banks, four foreign banks and a consortium of five financial institutions.

Société Générale, France’s third-largest bank by assets and the sixth largest in Europe, led the pack of the six investors that were finally given the green light to make a bid offer alongside South Africa’s First Rand and Stanbic Bank and local lenders KCB and I&M Bank.



Would you like to get published on Standard Media websites? You can now email us breaking news, story ideas, human interest articles or interesting videos on: [email protected]