The defunct Imperial Bank will be handed to a new investor before the end of June next year, the Central Bank of Kenya has indicated.
This is good news to depositors whose funds have been locked since the bank was put under receivership in October 2015. They will now access their money in a week between July23-27 next year when the premiership finally ends.
The regulator revealed this when it communicated to shortlisted investors, requesting them to submit their formal proposals by January 15 2018.
Although CBK declined to reveal names of shortlisted investors, it is said that Mauritius lender, SMB Holdings which recently acquired huge stake in Chase Bank is a front runner
Shortlisted Investors will be granted access to a comprehensive confidential data room that will allow them to develop a formal proposal for Imperial Bank, after completion of appropriate confidentiality agreements
Next week between October 16-20, shortlisted investors will sign confidentiality undertaking and open virtual including information memorandum by October 27.
Other key dates towards final transaction of the bank includes period between November 1-18 when site visit and credit file review will be conducted. Due diligence in virtual data room and management presentation will be held by December 20
Shortlisted candidates will have to submit non binding offers by January 25 next year to aid evaluation which is due the following day. Selection of the final investor will happen on or before January 27
Negotiations with the final investor and finalisation of legal documents is slated for a week between April 16-20 to aid final transaction that will be on or before June 29
In October 2015, the regulator placed the bank under receivership after it emerged that it was operating two sets of books, with a potential fraud of $449 million (approx. Sh46 billion) that placed depositor funds at risk.
Shareholders were accused for irregularly paying themselves $27 million (approx. Sh2.7 billion) as dividends when the bank was not making any profit and a further $20 million (approx. Sh2 billion) claimed from the directors for recklessly lending to firms.