Habib Bank Limited (HBL) will sell its operations and business in Kenya to Diamond Trust Bank by way of shares acquisition by the foreign bank. The winding up of HBL operations will end up its 60 years presence in Kenya.
According to the stock filing, HBL has entered into an agreement with Diamond Trust Bank Kenya (DTBK) to transfer/ sell the business , assets and liabilities of Habib Bank Limited’s Kenyan branches to DTBK. In return, HBL will receive an additional 13.28 million shares in DTBK which will enhance its shareholding from 11.97 percent to 16.15 percent in the Kenyan bank.
In this regard, State Bank of Pakistan (SBP) has accorded its approval to HBL for the transactions of operations and shares. The regulatory approvals are being awaited from the banking regulator in Kenya, which will complete the transactions under the corporate laws of Kenya.
Subsequent to the deal, HBL will have sizable shares in Diamond Trust Bank Kenya, with DTBK having subsidiaries in East Africa including Burundi, Tanzania, and Uganda.