Diamond Trust Bank Kenya Limited has announced the planned sale of its stake in DTB Burundi following the signing of a conditional sale and purchase agreement with a consortium of primarily Burundian-based investors, including its existing minority shareholder.
DTB’s Board of Directors of confirmed that the proposed transaction, which is subject to regulatory approvals, will entail the sale of its entire shareholding in DTB Burundi, which represents 83.67pc of DTB Burundi’s total issued share capital. The sale follows a recent expression of interest placed by the DTB Burundi minority shareholder, seeking to increase its stake.
Speaking when she confirmed the proposed transaction, DTB Group CEO, Mrs Nasim Devji, said that in accepting the offer from the consortium, the Board recognised the need to support the Burundian investors, who are equally keen to accelerate its already inculcated financial inclusion agenda.
The sale of the Burundi subsidiary, Mrs Devji said, is to align with the current DTB strategy, which is for the Group to focus on its core markets of Kenya, Uganda and Tanzania.
DTB, she said, entered Burundi 16 years ago, as part of its financial inclusion agenda, and will be leaving behind a stable, well-managed financial institution.
“The DTB Kenya Board has reviewed the offer from the consortium and our long-standing partner in Burundi and considers that it represents a fair value and return on investment for DTB,” Mrs Devji said.
She added, “The consortium has committed to maintaining and further lifting the bank’s financial inclusion agenda on an already established platform of good governance and good risk management while applying their local business acumen.”
DTB Burundi started operations in 2009 with one branch in Bujumbura, Burundi and has progressively grown to offer an array of banking solutions that are tailored to meet the unique needs of retail, business and corporate customers in the country. The subsidiary has, over the years, grown to four branches and is considered one of the top ten players in the growing Burundian market.
As a listed entity at the Nairobi Securities Exchange and as part of the regulatory requirements, DTB Kenya, through its Company Secretary, Mr Stephen Kodumbe, has issued a Cautionary Announcement, notifying its shareholders and the investing public of the proposed transaction.
“Completion of the proposed transaction is subject to conditions that are customary for transactions of this nature, including receipt of all regulatory approvals from, amongst others, the Central Bank of Kenya and the Bank of the Republic of Burundi, and to notifications to the Capital Markets Authority and, if required, other relevant regulators,” reads the Cautionary Announcement.
Pending completion of the proposed transaction, shareholders and the investing public are advised to exercise caution when dealing in DTB Kenya’s securities on the Nairobi Securities Exchange.
DTB will make further announcements in accordance with regulatory requirements as and when there are any material developments.
