KCB pays Sh10 Nominal Value In Imperial Bank Takeover
KCB will inherit Imperial bank without paying premium after a period of receivership under the supervision of Central Bank Of Kenya. According to reports, KCB will pay Sh10 to acquire five branches and a portion of loans and deposits.
Joshua Oigara speaking to a local newspaper said the Imperial Bank transaction that amounts to Sh10 is nominal value. This applies in cases where owners of an institution have run operations down leaving the buyer almost nothing.
The transaction which is still under the supervision of the Central Bank of Kenya highlights the high price Imperial Owners have to pay for embezzlement. The imperial bank was shut down in 2015 after fraud in billions was exposed.
KCB requested a modification of its binding offer last month after completing the verification of Imperial Bank loan book estimated at Ksh70 billion. KCB’s offer stamped by both Central Bank and Kenya Deposit Insurance Corporation further enhanced recovery for depositors. Former Imperial customers would then receive 12.7 percent of their balances giving the majority full access of their deposits.
Under the new depositor repayment programme 12.5 percent of the remaining balances due to eligible depositors will be released on completion of the signing of the final offer agreement, 12.5 percent on the first anniversary of the signing and 25 percent each on the second, third and fourth anniversaries respectively.