Reports are now emerging that Kenya’s two top banks and investment firm are lining up bids to buy-out troubled Chase Bank on the cheap. According to business news reports published by Kenya’s Business Daily Newspaper, KCB is currently leading the pack of possible suitors. Apparently, on Sunday April 10, KCB was being widely seen as standing in the pole position to buy-out Chase Bank.
The interest of KCB in the bank that was last week put under receivership is seen as its net of small and medium market category.
Apart from KCB though, Equity Bank is also quoted as having a keen interest in the possibility of placing a buy-out bid for Chase Bank. According to the Business Daily, other potential bidders include Chris Kirubi-led Centum Investments, I&M, and Commercial Bank of Africa. If Centum is able to buy-out Chase, it is expected to merge it with its banking arm Sidian Bank – formerly known as K-Rep Bank. This buy-out may come at a time when Centum is also planning to acquire a controling stake in Longhorn Publishers.
Chase Bank was put under receivership hours after up to Sh8 billion were withdrawn from the bank on Wednesday afternoon. The withdrawals had occured hours after the bank’s chairman Zuffrulah Khan and Group MD Duncan Kabui tendered their resignations.
According to Business Daily, Chase Bank owners, are currently said to be in favour of offers from suitors that had promised to keep the troubled lender alive as a subsidiary as opposed to those that want to swallow it up through a merger of operations.