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 | CfC Bank transaction approved |  |  |
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08 April 2008
Standard Bank Group Limited ("Standard Bank") has received regulatory approval for its transaction with CfC Bank Limited ("CfC Bank") in Kenya.
Incorporated in February 1955, CfC Bank became a public company in 1958 and listed on the Nairobi Stock Exchange in 1970. CfC Bank converted into a commercial bank under the name of CfC Bank Limited in 1995.
CfC Bank is involved in a range of diverse activities through a number of key subsidiaries and associates, which include:
- CfC Financial Services - 100% owned providing investment banking, corporate finance, structured and project finance, fund management and stockbroking services and products;
- CfC Life Assurance Limited - 100% beneficial ownership providing life assurance products and services in Kenya as well as pension and medical benefits;
- The Heritage A.I.I Insurance Company Limited - 64.08% direct ownership providing general insurance and life assurance products and services in Kenya; and
- The Heritage A.I.I Insurance Company (Tanzania) Limited - 38.45% beneficial ownership providing general insurance products and services in Tanzania.
CfC Bank's market capitalisation as at 3 April 2008 was KES29.6billion (approximately USD470.7million) and it is currently ranked as the 6th largest bank in Kenya. CfC Bank has three branches and one agency situated in Nairobi, as well as one branch in both Mombasa and Naivasha.
As at 31 December 2007, CfC Bank had shareholders' funds of KES6.0billion (approximately USD96million) and total assets of approximately KES43.3billion (approximately USD690million).
Standard Bank will merge its existing Kenyan operation, Stanbic Bank Kenya Limited ("Stanbic Bank Kenya"), with CfC Bank, which is listed on the Nairobi Stock Exchange. As a result Standard Bank will acquire sufficient shares to give it a 60% shareholding in the merged listed company, to be renamed CfC Stanbic Holdings Limited.
As at 31 December 2007, Stanbic Bank Kenya had shareholders' funds of KES3.4billion (approximately USD54million) and total assets of approximately KES34.5billion (approximately USD549million).
It is expected that the transaction will be implemented before the end of May 2008.
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