NAIROBI, Kenya, July 28 – Diamond Trust Bank has finalized the acquisition of Habib Bank Kenya following Central Bank’s final approval of the deal.
In consideration for the acquisition, Habib Bank’s parent company based in Pakistan has upped its shareholding in DTB by acquiring an additional 4.18 percent in the Kenyan Bank.
“HBLK will cease to be a bank licensed by CBK, and its rights and obligations will be taken up by DTB,” Central Bank said in a statement.
Consequently, effective first of August, Habib Bank Kenya will cease to be a bank and all stakeholders including depositors, borrowers, employees and creditors will continue their relationships with Diamond Trust Bank.
The acquisition includes a share swap arrangement that will now see Habib Bank hold 16.72percent shareholding in DTB.
According to the Central Bank, the acquisition pushes DTB’s market share to six percent.