The Central Bank of Kenya (CBK) issued a statement in which it states that they have received a non-binding offer from State Bank of Mauritius (SBM) for the acquisition of Chase Bank Kenya Limited. The deal is expected to conclude by the end of 2017. CBK and KDIC mentioned that the depositors and shareholders of Chase Bank Kenya were in favor of the non binding agreement.
The offer placed by SBM will potentially see the transfer of some Chase Bank’s assets to SBM. According to the Standard, SBM will acquire 75% of the KES 76 billion asset book held by Chase Bank. Depositors will be able to access part of their money through SBM branches after the deal is completed.
This is the second acquisition that SBM has made after it acquired Fidelity Commercial Bank for a takeaway value of KES 100 ($1.00). Part of SBM’s strategy is to expand in Africa of which Kenya is the first destination as an entry route. SBM has a market capitalization of $700 million and total assets in excess of $5 billion thus well placed for expansion.