State Bank of Mauritius makes non-binding offer to acquire some of Chase Bank’s assets
(Ecofin Agency) - State Bank of Mauritius Holdings (SBM), Mauritius’ second largest bank, made a non-binding offer for the partial acquisition of Kenya’s Chase Bank. “If agreed, it is expected that the proposed transaction will be concluded by the end of 2017,” said the Central Bank of Kenya in a statement.
Let’s recall that last June, SBM Holdings and French group Société Générale were announced by local media as the last two firms running to take over the Kenyan lender. However, this was never confirmed.
However, SBM has recently revealed that it wished to focus on reinforcing its activities in Kenya with Fidelity Bank (which it acquired) and other African countries. For its part, Société Générale seems to be satisfied with the subsidiary license it obtained few weeks ago, and has already appointed a Head for this unit.
Let’s also note that the lifting of receivership under which Chase Bank had been put, initially planned for October 7, 2017 was postponed to November 14, 2017. The Kenyan bank is still temporarily managed and administrated by the Kenya Deposit Insurance Corporation, the State institutions in charge of bank deposits’ guarantees. The offer made by SBM gives it the right to proceed to due diligence. Following this process, the Mauritius lender can also decide not to go through with the takeover.