(Ecofin Agency) - Mauritian banking group SBM Holdings announced in a statement published on Nov 22 that it will acquire 100% of Kenyan lender Fidelity Bank.

SBM Holdings indicated that it would spend Sh100 ($0.98) to buy the lender which detains only 0.39% of market share in the country. The Mauritian bank should however have to inject Sh1.45bn ($14.32 million) into Fidelity Bank after the deal is sealed, under the terms of agreement signed by the two lenders.

“The acquisition falls in line with our expansion strategy in East Africa,” SBM Holdings said in its statement.

“SBM Holdings will provide its expertise to boost competitiveness and resilience in the Kenyan banking sector,” said the Central Bank of Kenya adding that the “interest of foreign banks for local banks will contribute to the emergence of a world-class finance sector”.

Fidelity Bank has 14 branches and is 31st in Kenya's banks rankings which lists 41 institutions. SBM holdings which also operates in India and Madagascar had its total assets amounting to $4.2 billion at the end of September 2016.