Mauritian Financial Services group SBM Holdings ltd has announced plans to acquire Fidelity Commercial Bank subject to approval by CBK.
In a communiqué SBM says during a board meeting Monday, directors resolved to proceed with the acquisition of Fidelity Commercial Bank.
SBMH said they plan to inject 1.4 billion shillings as growth capital to the bank.
“The Board of Directors of SBM Holdings Ltd (SBMH) wishes to inform its shareholders and the public in general that, subject to regulatory approval, it has at its meeting of November 21 2016 resolved to proceed with the acquisition of Fidelity Commercial Bank, headquartered in Nairobi Kenya with a network of 14 branches across the country.”
SBMH added that the acquisition is in line with the regional expansion strategy into East Africa.
They also said the acquisition may constitute a notifiable transaction under Chapter 13 of the Stocks Exchange of Mauritius Listing Rules.
SBMH further advised shareholders to exercise caution while dealing with their shares during the acquisition period.
The Central Bank of Kenya Monday welcomed the proposal of acquisition of Fidelity Commercial Bank by SBM expected by the end of December.
