SBM Bank Kenya a subsidiary of Mauritius-based SBM Holdings has started off acquisition of certain assets and assumption of certain liabilities of Chase Bank Limited (Receivership) following approval by the Cabinet Secretary, National Treasury on June 28, 2018.
The agreement provides that there will be a transfer of 75 percent of the value of deposits currently under moratorium at Chase Bank, and the transfer of the majority of staff and branches of the existing CBLR operations. 25 percent of the value of moratorium deposits will remain in Chase Bank.
The acquisition and assumption process will be completed on August 17, 2018 says Central Bank
CBK placed CBLR into receivership when it failed to meet its financial obligations, and appointed the Kenya Deposit Insurance Corporation (KDIC) as the receiver manager.
SBM Holdings Limited is the third largest listed company on the Stock Exchange of Mauritius and had an asset base of over USD.5.6 billion (Ksh.560 billion) as at December 2017. It has operations in India, Madagascar and Kenya. It owns the second largest commercial bank in Mauritius (SBM Bank Holdings Limited). With this transaction, SBM Kenya’s market share increases from 0.23 percent to about 2.4 percent and it moves from being a small to a medium-sized bank.