Mauritius' SBM Holdings to take 75 pct of Kenya's Chase deposits, liabilities

Mauritius' SBM Holdings to take 75 pct of Kenya's Chase deposits, liabilities
A police officer stands by as another man takes a picture with his mobile phone of a notice from the Central Bank of Kenya taped to the closed entrance of a Chase Bank branch, after the bank was put u
By Maggie Fick

NAIROBI (Reuters) - Mauritius's SBM Holdings will acquire 75 percent of the value of certain deposits of Kenya's Chase bank plus matched liabilities, the Kenyan central bank said on Friday.

The Central Bank of Kenya has been seeking a strategic investor for Chase, which has been under receivership since April 2016 after failing to meet its financial obligations.

The central bank said last week that SBM Holdings had made a binding offer for some of the bank's assets and liabilities.

"We are in the home stretch," central bank Governor Patrick Njoroge told a news conference about the offer.

Depositors at Chase will have access to 75 percent of their deposits in the next few months.

Njoroge said these deposits were not blocked or contested in court cases related to the bank's receivership. "On the loans side, it will take a bit more time," Njoroge said.

He said SBM also intended to take up the maximum number of Chase staff and branches but did not give details.

Chase was the third medium-to-small lender to be closed in Kenya over a period of nine months, rattling investors in East Africa's richest economy, where the level of gross non-performing loans reported by banks rose sharply in 2015.

The central bank has not found a solution for the remaining 25 percent of Chase not acquired by SBM, Njoroge said.

He did not give a value for the stake purchased by SBM.

In addition to offering banking services, SBM Holdings has an asset management and stockbroking unit. The Mauritius bank also has a presence in Madagascar and India.

Kenya's Chase Bank has no relation to JP Morgan Chase & Co.

(Reporting by Maggie Fick; Editing by George Obulutsa and Edmund Blair)

2018-01-12 13:00:13

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