KCB Group #ticker:KCB is set to complete its acquisition of part of collapsed Imperial Bank’s assets and liabilities by June, the country’s largest bank says in its latest annual report.
The transaction, in which the lender will pay a nominal Sh10, will be implemented through its fully owned local subsidiary KCB Bank Kenya Limited.
Among the assets to be transferred to the Nairobi Securities Exchange-listed firm are Imperial Bank’s five branches and portion of its loans and deposits.
“KCB Bank Kenya, a subsidiary, received approval from the Central Bank of Kenya and Kenya Deposit Insurance Corporation (KDIC) to enter into a part transfer of assets and liabilities of Imperial Bank Limited (in receivership) –IBLR,” KCB said in the report.
The verification exercise is expected to be concluded in the first half of 2019 with the actual transfer of the selected assets to the KCB Bank Kenya books.”
For customers of the collapsed Imperial Bank, KCB’s deal gives them access to their deposits.
Imperial Bank had verified deposits of Sh27 billion at the time of its collapse, with the lender having reported total customer funds of Sh87 billion.
A significant portion of Imperial Bank’s assets and liabilities are tied up in lawsuits and will remain with the KDIC.
KCB is expected to pick the collapsed lender’s good business including performing loans.
Besides acquiring parts of Imperial Bank, KCB has also made a Sh6.6 billion all-stock bid for capital-starved National Bank of Kenya #ticker:NBK.
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