Bank of Tanzania (BoT) has approved 51 per cent takeover of Saving & Finance Bank by NIC Bank of Kenya, in undisclosed amount deal.
NIC's Managing Director and Chief Executive Officer, Mr James Muchiri, told the 'Daily News' in Dar es Salaam that the BoT and registrar of companies, BRELA, had approved and issued the name change licence.
"It was a process which I am glad we concluded and we are planning to officially launch the bank in the first week of next month," Mr Muchiri said yesterday.
The bank's branch and head office will be situated along Samora Avenue in the city.
Last May the NIC made an acquisition of majority stake of Savings & Finance. Following the imminent completion of the transaction, Saving &Finance will become a 51 per cent owned subsidiary of NIC Bank. The rest will be controlled by Saving & Finance.
NIC Bank 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.
In addition to the share purchase, NIC Bank will subscribe for additional equity in Saving & Finance to be payable partially by way of a cash payment of 2.6bn/- and a further subscription on the basis of the bank audited net profit for 2008.
The existing shareholders of Saving & Finance will also be injecting approximately 2.5bn/- into the bank by acquiring new shares.
This additional capital will be used to fund the business plan of Saving & Finance in the medium term with a view to enhancing the Bank's market share, capacity and geographical outreach.
Savings & Finance 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.