NIC Bank says to buy 51% in Tanzania's S&F Bank

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Kenya's NIC Bank (National Industrial Credit Bank Ltd) said on Monday it plans to acquire a 51 percent stake in Tanzania's Savings & Finance Commercial Bank (S&F).

But the deal, whose full value was not disclosed, is still subject to regulatory approval in both countries, it added.

"Its (S&F) shareholders and directors have significant experience in the Tanzanian financial sector and this will definitely strengthen our competitive position," NIC's Managing Director James Macharia said in a statement.

The statement said S&F had a total asset base of 42.6 billion Tanzania shillings ($33.20 million) as of the end of 2007. It generated a profit before tax of 1.4 billion Tanzania shillings, in the same year, it added.

Late in 2007, NIC Bank raised 1.2 billion Kenya shillings ($15.72 million) through a rights issue to finance expansion in Kenya and the region.

It opened four new branches in Kenya in 2008 and a couple more are scheduled for opening early next year.

The bank joins Equity Bank and Kenya Commercial Bank in the list of Kenyan banks that have forayed into regional markets like Uganda and Rwanda.

Equity Bank:
Kshs.176.00KES+9.00+5.39%

As of 12/31/2008

KCB:
Kshs.21.00KES+0.00+0.00%

As of 05/09/2008



(Reporting by Duncan Miriri; Editing by Victoria Bryan)