The CBK said Treasury secretary Henry Rotich approved the deal on June 28, clearing the last hurdle for the lender.
Mauritius-based SBM Holdings has begun acquisition of troubled Chase Bank’s assets after getting regulatory approval, the Central Bank of Kenya (CBK) announced on Friday.
The banking sector regulator said Treasury Secretary Henry Rotich approved the deal on June 28, clearing the last hurdle for the lender – whose shares trade on Stock Exchange of Mauritius — to take over Chase’s assets through its local subsidiary, SBM Kenya.
CBK governor Patrick Njoroge, who approved the buyout on June 13, said the acquisition will be completed on August 17.
“SBM Kenya will assume 75 per cent of the value of deposits under moratorium at CBLR (Chase Bank), all non-moratorium deposits, and will take-up over majority of CBLR branches and employees,” Dr Njoroge said in a statement.
“The remaining 25 per cent of the value of moratorium deposits along with other assets and liabilities remains in CBLR.”
SBM said a significant chunk of the more than Sh10 billion in fresh capital it sought to raise last month will be channelled into completing the acquisition of Chase, which was placed under receivership in April 2015.
