From Capital Business, Nairobi, Kenya
By BY ERIC LATIFF
NIC Bank has announced plans to acquire a 51 percent stake in one of Tanzania’s mid-sized commercial banks; Savings & Finance Commercial Bank Limited
The proposed acquisition of a majority interest in Savings & Finance Commercial Bank (S&F) marks NIC Bank’s first cross-border acquisition and underlines the Board’s growth strategy for expansion in the region. Following the imminent completion of the transaction, S&F will become a 51 percent-owned subsidiary of NIC Bank.
NIC Bank’s Chairman James Ndegwa said that the acquisition will complement the Bank’s organic growth as evidenced by the current rollout of a branch expansion strategy across Kenya. “This has been supported by the funding from the successful rights issue in November 2007 that raised Sh1.2 billion,” said Mr Ndegwa.
NIC Bank’s Managing Director James Macharia indicated that this transaction will enhance the Bank’s competitive position in the region, diversify its business and enhance services to its cross-border customers. “S&F is a natural partner for our growth and diversification efforts as it has reported steady growth and profitability.
In addition, its shareholders and directors have significant experience in the Tanzanian financial sector and this will definitely strengthen our competitive position,” said Mr Macharia.
Savings & Finance Commercial Bank was founded as a non-bank financial institution in 1994, converted to a fully-fledged Commercial Bank in 2005 and has branches in Dar es Salaam, Mwanza and Arusha.
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