Tanzania’s Fair Competition Commission has confirmed intentions by a local investor by the name Leonard Chacha Kitoka to acquire shares of Resolution Insurance.
Mr. Kitoka already has stakes in several firms including those listed at the Dar es Salaam Stock Exchange (DSE).
The competition regulator further said it is investigating the deal, whose value has not yet been revealed.
“According to Share Purchase Agreement entered into and signed by merging parties, the acquirer intends to The company is offering SMEs insurance, travel plans, motor private insurance, commercial motor insurance, home insurance, and medical insurance services,” FCC said in a statement.
Resolution Insurance originated in Kenya where it was started in 2002; it 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 a general insurer by the Tanzania Insurance Regulatory Authority.
In Nov 2014 – Global private equity firm, LeapFrog Investments had announced plans to acquire a majority shareholding at Resolution Health East Africa Limited at a cost of Sh1.6 billion.
The deal, which is undergoing final regulatory processes, marks LeapFrog’s second major transaction in Kenya. In October it announced the sale of its stake in Apollo Investments Limited, one of the top three regional insurers in East Africa, to Swiss Re.
Resolution Health East Africa Limited is the holding company for leading East African general insurer Resolution Insurance with operations in Kenya and Tanzania and in partnership with IAA-Resolution in Uganda.
“We are excited to partner with LeapFrog for our next stage of growth. We believe that LeapFrog’s dedicated operational investing approach, strong track record in health insurance, and emerging consumer expertise will add tremendous value. Importantly,” Resolution CEO Peter Nduati, said.