The Central Bank of Kenya has invited bidders to express interest in an equity stake in Chase Bank (Kenya) Ltd., which it placed into receivership in April 2016.
The central bank had said it wanted to bring the bank out of receivership by the end of the first quarter of 2017. It was placed there after liquidity difficulties brought about by "inaccurate social media reports."
KCB Group Plc unit KCB Bank Kenya Ltd. has been serving as manager of the bank since it reopened April 27, 2016, and it had reached a deal to buy the bank. KCB Group CEO Joshua Oigara later said, however, that the group did not have an exclusive right to buy the bank.
Interested investors will need to provide details of their long-term interest in the Kenyan banking sector; parties that may hold ownership in Chase Bank; management capacity, governance and oversight resources to be made available to the bank; regulatory capital that the investor expects to achieve after the bank is out of receivership; financial resources to be made available to the bank; liquidity support to be made available to the bank; and the type of transaction contemplated. Expressions of interest are due by April 21.
Shortlisted investors will be granted access to a data room to make an investor proposal. No further information than what is in the public domain will be made available at this stage.
Shareholders and funding creditors have been informed of the decision, while depositors will be informed shortly. The central bank expects to choose a bidder for exclusive talks by June 23, and the deal is expected to close by Sept. 30.
KPMG will serve as an adviser.