SBM BANK PRESS STATEMENT ON CHASE BANK ACQUISITION

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SBM Holdings Ltd (SBMH) is pleased to announce that the Central Bank of Kenya (CBK) and the Kenya Deposit Insurance Corporation (KDIC) have accepted the terms of a non-binding offer from SBMH whereby SBMH, through its subsidiary, SBM Bank (Kenya) Limited (SBMK), will acquire the carved out assets and liabilities of Chase Bank (Kenya) Limited (In Receivership).  The proposed transaction, which is subject to satisfactory completion of a legal and financial due diligence exercise as well as regulatory and other approvals, is in line with SBMH’s regional expansion strategy into East Africa.

Chase Bank is a commercial bank headquartered in Nairobi, Kenya with a network of 62 branches across the country. Based on its 2014 annual report, Chase Bank had total assets over USD 1 billion and employing around 800 staff.

According to the Chairman of SBMH, K.C Li Kwong Wing: “SBMH started its Africa foray with the acquisition of the Fidelity Commercial Bank (FCB) in May 2017.  It acquired a small Tier 3 bank with a view to build scale on it over time. The opportunity has now arisen for it to grow inorganically.”

He further added that “the acquisition of certain assets and matched liabilities of the Chase bank confirms the realisation of SBMH Africa strategy. With this proposed transaction, SBMH aims at consolidating its presence in East Africa and at gearing up the operations of SBMK, with the ambition of becoming a tier 1 bank in Kenya in the medium to long term.”

To recall SBMH has won the bid against 12 shortlisted financial contenders for this acquisition.

SBM aspiration for Africa is growing strong.  Not later than last week, the Group realised a landmark event by listing the Afreximbank’s Depositary Receipts on the Mauritian Stock Exchange, with SBMH acting as the Transaction Advisor and the Sponsoring Broker, and achieving the highest pre-listing capital raise of over USD 165 million in Mauritius.

SBM Group is one of the largest banking and financial services institutions listed on the Stock Exchange of Mauritius with a market capitalization of approximately USD 700 million as at 31 July 2017 and total assets of over USD 5 billion as at 30 June 2017. It has a Moody’s Ratings of Baa3 and is ranked among the top 1,000 banks in the world by The Banker.

The Group acts as a one-stop-shop for financial services offering retail and business solutions, treasury services, international banking facilities, e-business platform, trade finance, wealth management and investment banking activities, among others. SBM Group is building its strategic focus of being a strong regional player mirroring the national strategy and building its strength to stimulate growth in Mauritius, India and East Africa.

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Chris is a digital nomad and travel the country while freelancing and blogging. Rest assured, his job is always his first priority.