A total of twelve local and foreign
financial institutions have bid to purchase a majority stake in Chase
Bank Ltd (CBL), the Central Bank of Kenya (CBK) has revealed.
They include four unnamed international commercial banks, three local lenders and five financial groups.
Of
the dozen interested parties, an unnamed number had been shortlisted as
qualifying investors, which sees them to the next stage of vying for a
piece of the lender.
"A total of 12 replies to the EOI
(Expression of Interest) were received. The respondents comprised of
three Kenyan banks, four foreign banks, and five other financial
institutions and consortia," said CBK Wednesday evening in an update of
the process in which it is seeking to sell Chase Bank as part of a
restructuring plan.
“The evaluation of the EOIs has now been completed and a shortlist of qualifying investors has been identified,” it added.
Access restricted data
CBK
said the shortlisted investors will be granted access to “comprehensive
confidential data” that will allow them to develop a formal proposal
for taking an equity interest in CBL.
The interested parties have been requested to submit their formal proposals by June 9 this year.
To
come up with the final shortlist, CBK said it ensured candidates have
the capacity to ensure a speedy and optimal recovery for depositors,
creditors and other stakeholders of Chase Bank.
The banking sector regulator expects to seal a deal with the successful bidder by the end of quarter one.
Chase
Bank was placed under receivership in April last year following a run
on deposits after reports of liquidity problems spread to the public.
A sale will reduce main shareholders of
the previously fast-growing bank, including former chairman Zafrullah
Khan, into minority owners.
“The process and timing
beyond June 26, 2017, will be informed by the structure proposed in the
preferred investor proposal, but is currently intended that any
resultant transaction will be completed before September 30, 2017,” said
CBK in an earlier statement.
The selected investor
would have to inject capital to raise Chase Bank’s equity under the
restructuring being pursued by the regulator.
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