Tuesday, 22 November 2016

Mauritius Group to acquire Kenya’s Fidelity Bank



                               Image result for Kenya’s Fidelity Bank 
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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