advertisement

News

Poll impasse stalls SBM takeover of Chase Bank

Customers at a Chase Bank branch. FILE PHOTO | NMG
Customers at a Chase Bank branch. FILE PHOTO | NMG 

SBM Holdings, the Mauritian lender that wants to take over troubled Chase Bank, last month suspended a planned inspection of the Kenyan firm, citing the unfavourable environment arising from a prolonged election period.

Sources familiar with the transaction confirmed that SBM was initially scheduled to conduct due diligence for about a month beginning October 17, but is yet to do so.

The critical review is now expected to start this week or early next week and, if the verdict is favourable, SBM is expected to then leave the Central Bank of Kenya (CBK) with a binding contract for Chase Bank, which is under receivership.

“SBM representatives were expected to have started the due diligence a week after CBK announced their intention to buy Chase, but that did not happen,” a source who cannot be named because he does not speak for any party to the transaction said.

advertisement