Nairobi: SBM holdings draw up to close Fidelity bank buyout

By Correspondent

SBM Holdings is closing on the Fidelity Commercial Bank (FCB) takeover with a keen eye on Kenya as the entry point for Eastern Africa.

The two firms have worked steadily since November last year when SBM Holdings Limited (SBM Group) of Mauritius announced plans to acquire Fidelity Commercial Bank Limited (FCBL).

Following SBM Group’s preparedness for the conclusion of the transaction at the earliest, with necessary capital infusion, FCBL held a Board meeting on December 21, 2016 and then an Extraordinary General Meeting of shareholders on December 28, 2016 where the transaction was discussed and approved.

Regulatory bodies in Kenya and Mauritius have also been kept abreast of developments.

“In light of the progress thus far, it is expected that a Share Purchase Agreement (SPA) will be signed in the near future, which would allow requests of the remaining regulatory approvals to be made. Subject to these approvals, the transaction will then be completed,” Central Bank of Kenya said yesterday in a statement.

The proposed acquisition will mark the entry of SBM Group into Kenya’s banking sector.

SBM Group is further expected to bring its experience and expertise from Mauritius and other markets which will boost competitiveness in the 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.