CHASE BANK OF KENYA IN RECEIVERSHIP: INTERESTED?

Are you interested in investing in Chase Bank of Kenya to perhaps get into or consolidate your position in the East African banking scene, then exoress your interest before or by Friday Aoril 21, 2017.

According to the Central Bank of Kenya Chase Bank is currently in receivership under the joint watchful eyes of the Kenya Deposit Insurance Corporation and CBK.

According to a notice from the CBK yesterday, March 30; Chase bank is under receivership because of the following circumstances:

1) The existence of unsafe /unsound conditions to transact business that threaten the interest of the bank;

2) Likelihood of failure to meet financial obligations;

3) Violation of certain provisions of the law/regulation.

Existence of substantially insufficient capital in Chase bank.

Chase Bank, says had been reopened through combined intervention by the KDIC and CBK on April 27 2016  with reduced activities and Kenya's KCB group as manager.

Though these conditions exist, adds the CBK, in the view of both the apex bank and KDIC, none is an endemic part of the bank's business and so "with improved management, governance and oversight, CBL could represent long term viable banking business"

Hence the formal request for Expression of Interest (EOI) by any investor who may be interested in having a stake.

The EOI which should be sent  to kpmg, Advisor to CBK on CBL through chasebank@kpmg.com should contain the following:

1) Clearly stated interest in banking in Kenya with evidence of knowledge of East Africa banking.

2) Details of the likely ownership details in  chase bank proposed.

3) Detailed description of skills support, management capacity, governance and oversight resources available

4) Proposed regulation capital ratio that you will expect to achieve and maintain and how this will be achieved.

5) Financial resources that could be placed at CBL for development

6) Liquidity support that will be brought into the bank and

7) The broad outline of the transaction structure being contemplated.

The CBK says that after April 21. EOIs will be shortlisted and those so shortlisted will be given access to confidential information on Chase bank to enable them submit formal Investor proposal.

On June 9, 2017 the Central Bank of Kenya will engage the preferred bidder.

Subsequently, engagement sessions will be held with existing shareholders by June 20; followed by engagement with creditors on 25/6/ this year.

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