The Central Bank of Kenya has invited potential investors to place their bids for a stake in Chase Bank in a move that is likely to see Chase Bank owners edged out of the market.
In a statement released to the media, CBK invited to present their proposal in a process that is expected to be concluded during the first quarter.
“The Central Bank of Kenya (“CBK”) together with the Kenya Deposit Insurance Corporation (“KDIC”) is inviting investors to present an initial Expression of Interest (“EOI”) to take an equity interest in Chase Bank (Kenya) Limited (In Receivership) (“CBL” or “the Bank”). CBK and KDIC, the appointed Receiver, are executing their mandates in this matter in accordance with the Laws of Kenya. Chase Bank (Kenya) Limited was a rapidly developing commercial bank, operating through 62 branches. CBK placed Chase Bank (Kenya) Limited into receivership on April 7, 2016,” read part of the statement.
Chase Bank was placed under receivership during the first quarter of 2016 but was reopened though with reduced activities on April 27, 2016 under the management of KCB Bank Kenya Limited. The Bank has continued to operate and grow deposits from the date of receivership.
“This announcement commences a formal process of selecting a preferred investor for the Bank, which it is hoped may be concluded within the next six months. Following the receipt and evaluation of EOIs, a shortlist of qualifying investors (“Shortlisted Investors”) will be granted access to a comprehensive confidential data room to develop a formal proposal to acquire Chase Bank (Kenya) Limited,” read the statement.
“The Shortlisted Investors will be determined in a fair process using appropriate and objective criteria based on, inter alia, regulatory imperatives and prudential guidelines which will ensure a speedy and optimal recovery for depositors, creditors and other stakeholders of Chase Bank (Kenya) Limited, whilst also mindful of seeking to preserve and develop a sound and innovative banking system in Kenya”