The planned acquisition of Chase Bank by Mauritius lender SBM Holdings is expected to be complete by the end of December, Central Bank of Kenya Governor Patrick Njoroge said on Friday.
Njoroge said that despite delays brought about by the extended electioneering period, the transaction process was still in play and was set for conclusion before the end of the year.
“They are on the job and we still expect this to come into fruition as we had expected before, which is long before the end of December,” he said. “Nothing has changed in that area except for a delay in starting their work because of the various constraints that all of us were under in the last month or so.”
CBK and the Kenya Deposit Insurance Corporation last month received a non-binding offer from the Mauritius lender which includes the acquisition of certain assets and matched liabilities from Chase Bank.
“It is expected that this transaction will inter alia ensure a substantial recovery for depositors currently under moratorium and a transfer of a substantial number of staff and branches of the existing CBLR operations,” CBK and KDIC said in a joint statement released early October.
CBK and KDIC assessed that the non-binding offer presented by SBM represented a viable offer for the substantial resolution of Chase Bank, adding that it would not only benefit depositors but also strengthen the country’s financial sector.
SBM Holdings, through its subsidiary, SBM Bank (Kenya) Limited, has 10 branches in the country having acquired Fidelity Bank in May. The lender was picked out of 12 suitors that expressed interest in the deal.
In respect to Imperial Bank, the specific investors chosen are currently working on proposals with the deadline for submission set for January 2018.