NAIROBI, Kenya– Diamond Trust Bank Kenya has agreed to sell its controlling stake in its Burundi subsidiary, marking an exit from the market after 16 years of operations.
The bank’s board announced that it had signed a conditional sale and purchase agreement with a consortium of Burundian investors, including DTB Burundi’s existing minority shareholder, to acquire the lender’s 83.67 percent stake.
The deal, which awaits approvals from regulators including the Central Bank of Kenya and the Bank of the Republic of Burundi, will see DTB Kenya divest fully from DTB Burundi as part of its strategy to concentrate on its core markets in Kenya, Uganda and Tanzania.
DTB Group chief executive officer Nasim Devji said the board considered the offer fair and consistent with the group’s long-term objectives.
“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,” she said.
She added that the buyers had pledged to build on the lender’s progress in financial inclusion and governance.
“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 entered Burundi in 2009, opening its first branch in Bujumbura, and has since expanded to four branches.
Over time, the subsidiary established itself among the top ten players in the country’s growing banking sector.
As a listed entity on the Nairobi Securities Exchange, DTB has issued a cautionary statement to shareholders, urging them to exercise care when trading its securities pending completion of the deal.
