Mauritius SBM gets green light on acquisition of Kenya's Chase Bank assets

The Kenyan Central Bank has accepted a Mauritius lender’s binding offer for the acquisition of assets and liabilities from Chase Bank.

The Kenyan bank was placed under receivership in April 2016 after experiencing “liquidity difficulties” and being unable to meet financial obligations. SBM is now the strategic investor for Chase.

SBM Holdings, through its subsidiary, SBM Bank (Kenya) Limited, has 10 branches in the country, having acquired Fidelity Bank in May 2017. The lender was picked out of 12 suitors that expressed interest in the deal.

Group MD Duncan Kabui and chairman Zafrullah Khan later resigned amid growing public concerns over the health of the bank.

CBK governor Patrick Njoroge announced they had accepted the offer by SBM Holdings in a statement on Friday.

Njoroge said the transaction will ensure transfer of 75 per cent of the value of deposits currently under moratorium.

Njoroge further noted SBM’s experience and expertise in Mauritius and other markets and that these will help improve Kenya’s sector.

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.

It has a market capitalisation of approximately $600 million, with the Government of Mauritius as a significant shareholder, and total assets in excess of $4 billion. SBM provides all services of a universal bank within a diversified business model.