This archive report was first published on 4 December 2019.
On December 4, 2019, a new development emerged in the Imperial Bank saga as Canadian private equity firm Amassment Corporation made a fresh bid to take over the bank's assets.
The PE firm's revised offer, seen by Business Daily, drops its earlier proposal to have the Kenya Depositors Insurance Corporation (KDIC) fund its bid.
According to the new offer, the KDIC will only pay for incidental costs associated with transferring Imperial's assets to a new company controlled by the PE firm.
Amassment Corporation's Chief Executive stated, 'No cash capital into NewCo will be required by KDIC. As customary KDIC's only expense will be covering any transactional costs associated with the transfer of assets.'
The PE firm's revised bid retains other terms, offering depositors claiming Sh49 billion preference shares in the new company.
The preference shares will earn unspecified yearly dividends for income made from recoveries of the loan assets, while the company retains some of the revenues for growth and buying future loans.
Depositors who wish to liquidate their stake in the future will have the option of selling in a private placement or exiting once the company is listed on a public stock exchange.
