The Central Bank of Kenya and Kenya Deposit Insurance Corp. said they received a nonbinding offer from Mauritius-based financial services group SBM Holdings Ltd. to acquire certain assets and matched liabilities belonging to Chase Bank (Kenya) Ltd.
The proposed transaction, subject to necessary due diligence and a binding contract, is expected to ensure substantial recovery for depositors of Chase Bank currently under moratorium and will entail the transfer of a substantial number of staff and branches of the lender. Chase Bank's depositors and shareholders have already expressed their support of the nonbinding offer, according to an Oct. 9 statement.
The central bank and the KDIC added that they view the nonbinding offer as a "viable proposal" for the substantial resolution of Chase Bank's receivership.
If agreed, the proposed transaction is expected to conclude by year-end.