Diamond Trust Bank Kenya Limited (DTB) (NASE:DTK.O) agreed to acquire Habib Bank (K) Limited from Habib Bank Limited (KASE:HBL) for KES 1.4 billion on March 21, 2017. Under the terms, the consideration will be satisfied by the issuance of 13.3 million ordinary shares of Diamond Trust Bank Kenya Limited. The completion of the transaction is subject to closing conditions that include procurement of Diamond Trust Bank Kenya's and Habib Bank Limited's shareholders' approvals as well as regulatory approvals from various regulators including the State Bank of Pakistan, the Central Bank of Kenya, the Competition Authority of Kenya and the Capital Markets Authority. The Directors of Diamond Trust Bank Kenya Limited unanimously recommend that the shareholders should vote in favour of the resolutions to be proposed at the meeting. Following completion, Diamond Trust Bank Kenya will integrate the Habib Kenya Branch operations into its systems and will be concluded within six to nine months of completion. The transaction is expected to complete by July 21, 2017.

The transaction was approved by Habib Bank's and Diamond Trust Bank Kenya's shareholders on May 25, 2017 and by regulatory authorities on July 31, 2017. The transaction will close effective August 1, 2017. The Board considers that there will be no dilutive impact from the increase in issued share capital of DTB on earnings per ordinary share given that the earnings per share of DTB. It is projected in the short-medium-long-term that this acquisition is likely to favourably impact on DTB's earnings.

John Kiruthu of Pacifis Advisory Limited acted as financial advisor while Karim Anjarwalla and Rosa N. Mutero of Anjarwalla & Khanna Advocates acted as legal advisor for Diamond Trust Bank Kenya Limited. Richard Njoroge of PricewaterhouseCoopers acted as auditor and Anthony Murage of PricewaterhouseCoopers acted as financial advisor for Diamond Trust Bank Kenya Limited. Mahmood Hussein of ApexAfrica Capital Limited acted as broker for Diamond Trust Bank Kenya Limited.