DTB branch in Nakuru. FILE PHOTO | NMG
DTB Group has acquired an additional 16.34
per cent stake in its Burundian subsidiary after buying out
International Finance Corporation (IFC) for Sh152.2 million.
The
transaction, which was completed in the year ended December, raised the
Nairobi Securities Exchange-listed firm’s equity in Diamond Trust Bank
Burundi to 83.67 per cent from the previous 67.33 per cent.
It
marks the latest investment in regional subsidiaries in which the
Kenyan banking multinational has been raising its stake by participating
in rights issues and buying out minority shareholders.
DTB
is among a group of local banks that are expanding their regional
footprint in a bid to capture new growth and reduce reliance on the
Kenyan market.
“On June 22 2018, Diamond Trust Bank
Kenya Limited acquired an additional 16.34 percent stake in Diamond
Trust Bank Burundi Limited by purchasing International Finance
Corporation’s shareholding in the entity at a consideration of Sh152.2
million,” the lender says in its latest annual report.
“The group increased its shareholding to 83.67 per cent from
67.33 per cent before the purchase. The carrying amount of the net
assets the group acquired was Sh166.7 million.”
The transaction leaves DTB and a Burundi-based private company holding a 16.33 per cent stake — as the owners of the subsidiary.
DTB
says its regional subsidiaries collectively contributed to 25 per cent
of its total assets and 16 per cent of its profitability in the year
ended December.
The lender made a net profit of Sh6.6 billion in the review period compared to Sh6.4 billion the year before.
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