SBM Escalates Battle Over Fidelity Sale, but could lose Rs800m

State Bank of Mauritius (SBM) is intensifying its legal struggle over the sale of Fidelity Commercial Bank (FCB) by appealing to Kenya’s  Court of Appeal.

In a move to escalate the ongoing dispute, SBM has filed an application with the country’s Commercial Court Judge Alfred Mabeya, arguing that the judge neglected its stance that the alleged sales agreement between SBM and Fidelity shareholders should have been subjected to arbitration.

SBM also seeks the Court of Appeal’s input on whether the omission of SBM Africa Holdings (SBM Africa) in Sultan Khimji’s case fatally undermined his argument.

Lawyers Abbas Esmail and Zillah Moka, representing SBM, contend that the judge’s failure to include SBM Africa in the ruling was an error.

They were unaware of the judge’s July 28, 2023 decision until it was reported in the media. SBM’s lawyers stated that the dispute should have fallen within the realm of the throw-away price concept.

The legal dispute centres around the sale of FCB, with Khimji alleging that CBK coerced FCB shareholders into selling the bank at an undervalued price.

Shareholders are demanding KS2.5Bn (Rs800million) s compensation. SBM asserts it provided comprehensive records to Khimji.

The hearing for SBM’s application is set for October 13, 2023.

Source: Standard Media