Dar es Salaam — Tanzanian sole proprietor Leonard Chacha Kitoka is seeking to acquire shares of Resolution Insurance, a local health and non-health insurance services provider, which was established in 2008.
Mr Kitoka, who is currently the managing director and member of the board of directors of Innovex Consulting, Research and Procurement firm, also owns stakes in a number of firms and banks, including those listed at the Dar es Salaam Stock Exchange (DSE).
Mr Kitoka is also a board member of other organisations such as Institute of Directors in Tanzania, Victoria Finance, Africa Development Consultants (Rwanda), LCP (an investment club) and Mukikute, a Non-Governmental Organisation fighting tuberculosis. Fair Competition Commission (FCC) has already announced that it is carrying out an investigation into the deal, whose value has not yet been revealed.
FCC has powers to investigate, inter alia, entry into and exit from markets. The FCC said in a public notice last month that it received merger notification that Mr Kitoka, a Tanzanian investor and sole proprietor, intends to acquire shares in Resolution Insurance Limited, a company incorporated in Tanzania. "Pursuant to Share Purchase Agreement entered into and signed by merging parties, the acquirer intends to acquire certain shares in the target firm," says FCC in a notice.
Currently, the target company is offering SMEs insurance, travel plans, motor private insurance, motor commercial insurance, home insurance and medical insurance services. Details obtained from its website have shown that, on medical insurance, the company has developed a strong network of over 200 providers (hospitals, clinics and doctors) in Tanzania. The company, which originates from Kenya where it was established in 2002, ventured into the Tanzanian market in 2008 and in October 2012, it was converted and licensed as an insurer.
In April 2016, Resolution Insurance was licensed as general insurer by Tanzania Insurance Regulatory Authority.