Diamond Trust Bank buys Habib Bank

Diamond Trust Bank buys Habib Bank

- in Business, News

Diamond Trust Bank Kenya Limited (DTB) has acquired 100 per cent stake in Habib Bank Limited Kenya (HBLK). The move takes effect on August 1.

According to Central Bank of Kenya (CBK), Habib Bank Limited (HBL), which fully owns HBLK is based in Pakistan and has a shareholding in DTB.

In a statement sent to the newsrooms, CBK said this acquisition follows its approval on June 21, for HBL to acquire an additional 4.18 per cent 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, for DTB to acquire the Business, Assets and Liabilities of HBLK as provided under Section 9 of the Banking Act,” the statement said.

Following the acquisition with effect from August 1, 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 sixth in terms of market share as at May 31, with 63 branches,” the statement said.

HBLK was licensed in 1956 and was ranked 33rd in terms of market share as at May 31, with five branches.

Taken together, they had a combined market share of about six percent as at May 31. DTB has a banking presence in Kenya, Uganda, Burundi and Tanzania, and is listed at Nairobi Securities Exchange.

 

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