Mauritius is set to acquire Kenya’s Fidelity Commercial Bank
subject to regulatory approvals in Kenya and Mauritius.
Central Bank of Kenya says the proposed acquisition will
mark the entry of SBM Group into Kenya’s banking sector.
SBM Group is the second-largest company listed on the Stock
Exchange of Mauritius with an asset base of about Sh417 billion (US$4.2
billion) as at September 30, 2016.
SBM Group’s banking arm, SBM Bank (Mauritius) Ltd., is a
leading bank in Mauritius with an international footprint in India, Madagascar,
and a representative office in Myanmar.
“SBM Group will bring its experience and expertise from
Mauritius and other markets, to enhance competitiveness and the resilience of
Kenya’s banking sector. SBM Group is pursuing an international expansion
strategy, and for the African region, it is anchored on Kenya as the entry
point for Eastern Africa,” CBK says in a statement.
Fidelity Commercial Bank Ltd. (FCBL) commenced operations as
a non-bank financial institution in June 1992, and converted into a commercial
bank in April 1996.
It was ranked 31 of 41 banks in terms of market share as at
December 31, 2015, with a share of 0.39 percent and fourteen branches around
the country.
“The transaction is expected to be completed by December 31,
2016, and further updates will be provided as the transaction progresses. CBK
welcomes the interest of foreign banks that will contribute to the emergence of
a world-class financial sector,” the regulator noted.
CBK stopped issuing any new licenses commercial banks last
year.
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