Habib Bank will cease to exist from Tuesday next week after Diamond Trust Bank (DTB) #ticker:DTK completed its acquisition.
The 100 per cent acquisition followed Central Bank of Kenya (CBK) approval on June 21 for Habib Bank Limited (Pakistan) -- which fully owned Habib Bank Kenya (HBLK) and an existing DTB shareholder -- 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.
A subsequent approval by the Treasury Cabinet secretary Henry Rotich on July 7 allowed DTB to take over HBLK, completing the deal.
“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,” CBK said in a statement on Friday.
Licensed in 1997
DTB was licensed in 1997, and is ranked sixth in terms of market share as at May 31, with 63 branches, while HBLK was licensed in 1956 and ranked 33rd in term of market share, with five branches.
Together, they had a combined market share of about six per cent by end of May 2017.
DTB has a banking presence in Kenya, Uganda, Tanzania and Burundi, and is listed at the Nairobi Securities Exchange (NSE).