Equity Bank Acquires Spire Bank
Equity Bank on Tuesday announced acquisition of some assets and liabilities of Spire Bank.
The deal brokered and backed up by the CBK will see the troubled teacher owned bank get a lifeline out of a Financial Crisis.
“As announced earlier,CBK welcomes this Transaction which will enhance stability of the Kenyan Banking Sector”
The completion of approvals by the Regulators comes after Shareholders of the Bank approved the Acquisition on September 8 last year.
Further the deal Will see the Mwalimu Sacco who’s the owner of the bank pay Equity Bank additional 1.7 billion to cover Liabilities.
Equity will also acquired Spire Bank’s 20,000 existing Depositors whose Deposits are approximately 1.3 Billion and 3,700 with a loan book of approximately 945 Million.
With completion of the transaction, customers holding deposits in Spire Bank, other than the remaining deposits from Spire Bank’s controlling shareholder, and specified loan customers will now transition to become EBKL customers. This means that these customers will have new Equity Bank accounts and besides their domicile branch, they become part of a big network offering more capabilities to self-serve and enjoy banking on their mobile devices.
The financially Ailing bank formerly known as Equatorial Commercial Bank Limited started functioning back in 1984 as Non-Financial institution and then converted into a commercial bank in 1995.
In 2010 it merged with southern credit banking corporation limited and then in December 2014 Mwalimu National Cooperative Savings and Credits Society Limited acquired a major stake in the bank which saw it change its name to Spire Bank Limited.
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