LAHORE
According to sources, one of Pakistan’s premier banks, Habib Bank Limited (HBL) has merged its operations in Kenya into Diamond Trust Bank, Kenya.
The strategic business move jumped up and followed after receiving the necessary regulatory approvals from the central banks of either country.
After the said merger, HBL bank branches in Kenya will be rebranded as branches of Diamond Trust Bank along with the overall operations and businesses. This change will come into effect from August 01, 2017.
Contemplations:
On 22nd March, HBL entered into an agreement with Diamond Trust Bank Kenya (DTBK) to transfer/sell all of business, assets, and liabilities of Habib Bank Limited’s Kenyan branches to DTBK.
The merger of the HBL operations has been done by way of shares acquisition with Diamond Trust Bank. In return, HBL received 13.28 million shares in DTBK. HBL already owns shares in the Kenyan Bank, which have now been enhanced from 11.97 per cent to 16.15 per cent in the DTBK.
Subsequent to the deal, HBL will have sizable shares in Diamond Trust Bank Kenya, which has subsidiaries in East Africa, including Burundi, Tanzania, and Uganda.
With the acquisition/merger, HBL will end its 60 years of presence in Kenya.
