Nairobi Securities Exchange listed Diamond Trust Bank Kenya Limited (“DTB”), Kenya’s sixth largest lender has announced that it has entered into an agreement to acquire Habib Bank Kenya Limited, which is ranked 33rd out of 41 banks with a market share of 0.34 percent as at December 31, 2016.
However, the transaction is subject to regulatory and shareholder approvals and is expected to be concluded in the first half of 2017.
DTB will create additional 13,281,105 ordinary new shares at a price of KShs. 137.39 per share in order to accommodate Habib Bank who is already a shareholder in DTB. Existing DTB shareholders will be diluted by 4.75%.
In a statement, CBK said;
“The transaction is subject to regulatory approvals in Kenya and Pakistan. DTBKL commenced operations in 1946 as a financial institution. It converted into a fully-fledged commercial bank in 1997 and subsequently merged with Premier Savings and Finance Limited in March 1999. DTBKL has evolved from its initial status as a community based non- bank financial institution into a fully-fledged, public-quoted commercial bank, with diversified product capability and a footprint in Kenya, Tanzania, Uganda and Burundi.”
The two Banks have a common principal shareholder, the Agha Khan.
Diamond Trust Bank has network of sixty one branches in Kenya while Habib Bank has been operating in Kenya since 1956 when it opened its first branch in Mombasa and has network of six branches