Mauritian group in Sh2.7bn buy out of troubled Fidelity Bank

Mauritian financial services firm SBM Holdings has reached a deal to buy out troubled Kenyan lender Fidelity Commercial Bank in a transaction worth up to Sh2.7 billion that is likely to end speculation about the bank’s future.

SBM Holdings, which is listed on the Stock Exchange of Mauritius, will reportedly pay Fidelity Bank shareholders up to Sh1.3 billion and make a capital injection of Sh1.46 billion into the lender.