NIC begins regional
drive, acquires
Tanzania bank
By Macharia Kamau
A local bank has announced plans to acquire a controlling stake in savings and Finance Commercial Bank (S&F), a Tanzanian mid-sized bank.
NIC Bank announced that it would buy a 51per cent stake in the bank as its first cross-border acquisition and underlines the growth strategy for expansion in the region.
NIC Chairman James Ndegwa said the transaction is expected to be complete by April next year. It is, however, subject to regulatory approval by Kenyan and Tanzanian authorities.
He also said the bank would soon convene an extra ordinary general meeting for its shareholders to approve the deal, which will be financed by the proceed of the bank’s rights issues that was conducted late last year.
"The expansion of the bank, including the increase in branch network and the now acquisition of the bank, has been supported by the funding from the successful rights issue in November 2007 that raised Sh1.2billion," said Ndegwa.
Managing Director James Macharia said the acquisition would enhance the bank’s competitive position in the region, diversify its business and enhance services to its cross-border customers.
In addition to the share purchase, NIC will invest a further Sh155 million for an equity in the bank. NIC recently launched a rebranding process to reposition itself in the increasingly competitive market.
It has also opened four new branches in Nairobi and Mombasa this year and plans to go to Thika and Kisumu early next year, and plans to open up additional 20 branches.
The Standard of Kenya.
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