[Kenya] Diamond Trust Bank acquires Habib Bank
Diamond Trust Bank Kenya Limited has acquired a 100 percent stake in Habib Bank Limited Kenya (HBLK), effective August 1, 2017.
HBLK is fully owned by Habib Bank Limited (HBL) whose head office is based in Pakistan. HBL is an existing shareholder in DTB. This acquisition follows CBK’s approval on June 21, 2017, for HBL to acquire an additional 4.18 percent shareholding in DTB under section 13 (4) of the Banking Act, as a consideration for the acquisition.
Subsequently, approval was granted by the Cabinet Secretary, National Treasury on July 7, 2017, for DTB to acquire the Business, Assets and Liabilities of HBLK as provided under Section 9 of the Banking Act. Consequently, effective August 1, 2017,
HBLK will cease to be a bank licensed by CBK, and its rights and obligations will be taken up by DTB. All HBLK stakeholders including depositors, borrowers, employees, and creditors will therefore continue their relationships with DTB. DTB was licensed in 1997, and was ranked 6th in terms of market share as at May 31, 2017, with 63 branches. HBLK was licensed in 1956, and was ranked 33rd in terms of market share as at May 31, 2017, with 5 branches.
Taken together, they had a combined market share of about 6 percent as at May 31, 2017. DTB has a banking presence in Kenya, Uganda, Burundi and Tanzania, and is listed at the Nairobi Securities Exchange.