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Acquisition of Chase Bank in top gear

CBK invited investors to present an initial Expression of Interest (EOI) to take an equity interest in Chase Bank. Photo/FILE.

NAIROBI, Kenya, May 3 – The quest for getting a suitable buyer for Chase Bank Kenya has inched higher as Central Bank of Kenya (CBK) shortlists investors who will bid to take an equity interest in the relationship Bank.

CBK though not giving details of the shortlisted investors says that they have been informed of the outcome.

“The shortlisted Investors were determined using appropriate and objective criteria based on, inter alia, regulatory imperatives and prudential guidelines which will ensure a speedy and optimal recovery for depositors, creditors and other stakeholders of CBL, whilst also mindful of seeking to preserve and develop a sound and innovative banking system in Kenya,” CBK said in a statement.

Going forward the shortlisted investors will be granted access to comprehensive confidential data that will allow them to develop a formal proposal for taking over the bank.

“Shortlisted Investors have been requested to submit their formal proposals by June 9, 2017, 5:00 p.m. (East African Time),” the regulator said.
In March 30, 2017 CBK invited investors to present an initial Expression of Interest (EOI) to take an equity interest in Chase Bank.

The deadline for submission of EOIs expired on April 21, 2017 with about 12 replies to the EOI received.
The respondents comprised of three Kenyan banks, four foreign banks, and five other financial institutions and consortia.

The regulator had earlier planned to complete its acquisition by the end of March after eight potential buyers expressed interest including Kenya Commercial Bank.
Chase Bank was placed under receivership in April 2016 after reports of its liquidity hurdles gained traction online.

KCB Group later took over management of the bank with a plan to fine tune the modalities of an acquisition.
So far, Chase Bank has been allowed to do all transactions including foreign exchanges and issuing loans.

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