6 June 2008
Nairobi — CfC Stanbic Holdings Limited, the new company formed following a takeover of Stanbic Bank Kenya Limited by CfC Bank started operations Thursday.
Stanbic Bank and CFC Bank managing directors Mike Du Toit (left ) and Mudabhushi Soundararajan address a press conference on the merger of the two banks at a local hotel recently. Photo/WILLIAM OERI
This follows days of speculations, after the initial formalisation of the deal at the end of last month elapsed due to a court order barring the Stanbic bank form consummating the deal.
"We are very pleased that we can now proceed with integration of the existing operations under one team," said Mr Mike du Toit, managing director of CfC Stanbic Bank.
A group of former employees and a private company had moved to court to stop the planned deal.
In the suit, the employees are seeking from the bank Sh1.1 billion in terminal dues plus interest until payment in full.
On the other hand the company, Industrial Plant Limited, is seeking Sh26.5 billion for breach of contract, which it claims, led to loss of business.
The High Court had ordered the bank to deposit a total of Sh500 million and Sh200 million respectively for the cases as security before finalisation could be realised.
The bank complied on Wednesday. Completion of the requirements now gives the Standard Bank Group a 60 per cent share holding in CfC Bank, a listed company. The stake is an equivalent of 164 million ordinary shares in the bank.
CfC Stanbic Holding's banking operation, is now the fourth largest bank in Kenya by market capitalisation.
According to Mr Madabhushi Soundararajan, group chief executive of the new firm, the integration of services will be carried out in phases. "Once complete, customers will be able to carry out their banking at all previous CfC and Stanbic Bank branches in Nairobi, Mombasa and Naivasha. It is an appropriate platform for us to expand and improve our network and distribution capabilities for banking and non-banking financial services," he said.
The new bank will retain all its current employees with plans to add more staff if need arises to support its increased operations.
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