61-year old bank Habib Bank will cease to exist from as from August 1, 2017, following the completion of a takeover by Diamond Trust Bank (DTB).
“Effective August 1, 2017, HBLK will cease to be a bank licensed by the Central Bank of Kenya (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.
The three-decade old Bank was completely acquired after a 100 percent of its shares were purchased by Habib Bank Limited (Pakistan), which fully owned Habib Bank Kenya (HBLK) and an existing DTB shareholder.
Regulations for a purchase further required Habib Bank Limited to acquire an additional 4.18 percent shareholding in DTB under Section 13 (4) of the Banking Act, as a consideration for the acquisition, Business Daily Africa reported.
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. It has presence across most East African countries including Kenya, Uganda, and Tanzania.