The board of Mwalimu Sacco has faced a dilemma after a Dubai-based Singaporean fund made a new offer to purchase Spire Bank. The Management of the Sacco is expected to have a formal buyout proposal from a local bank.
Feonirich Investment Pte, through its expression of interest offer (EoI), asked for its consideration for the buying of the bank.
“Kindly accept this irrevocable EOI as our intent to negotiate in good faith for the purchase and acquisition of all shares, 100 percent ownership, assume full control of operations and management, and injection of fresh capital for securities sustainability and potential growth of the herein mentioned commercial bank and finance business upon your agreement to the following terms,” it said in the offer letter dated April 7.
On the contrary, the bank had also seen a local bank express interest in buying it, and the board has yet to decide which investor it shall sell.
Others who have shown interest in the teachers’ bank include a Hong Kong Stock Exchange-listed Chinese technology, a group of local tycoons.
Mwalimu Sacco had initially settled on an asset purchase to deal with the troubles at the institution.
Still, the CBK advised the involvement of a strategic investor who has the proof of availability, source of funds and experience in running a bank.
Both the Chinese investor and the local tycoons from the race failed to meet these qualifications.
