Connect with us

Business News

Kenya’s Consolidated Bank seeks Ksh3.5 billion Cash Injection in Exchange for 175M New Preference Shares



CONSOLIDATED BANK OF KENYA LIMITED has invited local and foreign investors to inject Ksh3.5 billion in exchange of 175 million New Preference Shares as it seeks to implement a Balance Sheet Reorganisation Strategy as approved by its shareholders last month.

On 10 December 2018, the bank’s chief executive Thomas Kipkemei Kiyai said interested investors should download Pre-qualification Assessment Notes and Pre-qualification Criteria Document from the CBKL’s website and send the duly completed documents by 09 January 2019 to be considered for the investment opportunity.

“A list of all participating investors shall be circulated within three hours of the above closure deadline,” said Mr Kiyai.

On 30th November 2018, CBKL’s shareholders, at the recommendation of the Board of Directors, approved a number of resolutions authorising the Directors of the Bank to allot the New Preference Shares to an Investor.

The open invitation for Expressions of Interest (EOI) will be the first stage to identify the investor.

“CBKL is implementing a Balance Sheet Reorganisation Strategy as a precursor to the implementation of a future Privatization Strategy,” said Dr. Charles Iyaya, the bank’s chairman.

The money will be used, among other things, to enable the firm comply with capital requirements set up by Central Bank of Kenya, and fund its growth strategy. The latest financial report shows that CBKL has Ksh276.57 million in core capital, contrary to CBK’s minimum requirement of Ksh1 billion.

The National Treasury owns 85.8 per cent of the lender, and the rest held by other government agencies.

Source link