Listed regional lender, Diamond Trust Bank Kenya Limited (DTB), has accepted to sell its stake in its Burundi subsidiary, following the signing of a conditional Sale and Purchase Agreement (SPA) with a consortium of Burundian investors led by an existing minority shareholder.
The bank’s Board of Directors affirmed that the bank will sell its entire stake in DTB Burundi, which represents 83.67% of Burundi’s total issued share capital. The sale of the stake will mark the end of 16 years of DTB’s operation in Burundi. DTB entered Burundi in 2009, becoming the first Kenyan bank to establish a presence in the country.
According to the bank, the sale follows an expression of interest placed by the bank’s minority shareholder, seeking to increase its stake. DTB Group CEO, Mrs. Nasim Devji, said that the sale of the subsidiary would align with the Group’s strategy to concentrate on its major markets in Kenya, Uganda, and Tanzania.
The bank did not disclose the value of the transaction but expressed satisfaction with the amount agreed upon by the consortium. Speaking when she confirmed the review of the offer by the Board of Directors, Mrs. Nasim Devji said that the offer represents a fair value and Return on Investment (ROI) for the bank.
DTB Kenya issued an announcement to its shareholders and the investing public notifying them of the proposed transaction. The transaction will be completed upon receipt of all regulatory approvals from the Central Bank of Kenya, the Bank of the Republic of Burundi, the Capital Markets Authority, and other relevant authorities.
The bank has urged shareholders and investors to exercise caution when trading DTB securities on the Nairobi Securities Exchange (NSE) until the transaction is completed.
DTB Burundi 2024 Financial Performance
In the year ended December 2024, the Burundi banking subsidiary registered a net profit of KES 50.6 million, down 56% from KES 115.5 million in 2023. Total assets contracted to KES 4.6 billion from KES 6 billion in the previous year, while total equity dropped to KES 1.4 billion from KES 1.7 billion.
Also Read: CBK Takes Bold Step with BS-SOC to Protect Financial Integrity
