Regional lender Diamond Trust Bank has announced plans to exit Burundi in a deal that will local Burundian investors purchase the financial institution . In an update on Monday, the Board of Directors of Diamond Trust Bank Kenya Ltd said the planned sale of its 83.67 percent stake in DTB Burundi.

DTB Kenya Board said the proposed transaction, which is subject to regulatory approvals, will entail the sale of its entire shareholding in DTB Burundi, which represents 83.67 percent 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. 

DTB Group CEO, Mrs Nasim Devji, said that in accepting the offer from the consortium of Burundian investors aligns 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 the capitak Bujumbura 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 NSE. DTB said it will make further announcements in accordance with regulatory requirements as and when there are any material developments.