DFCC Bank resumes negotiations to sell its stake in Acuity Partners to HNB

DFCC Bank has announced its decision to resume negotiations for the sale of its 50 percent stake in Acuity Partners to Hatton National Bank (HNB), as per a stock exchange filing.

The boards of directors of both banks have approved proceeding with discussions regarding the divestment. 

“The board of directors of the bank on December 15, 2024, consented to proceed with the negotiations, based on the response received for the revised intimations for the sale of a 50 percent stake of Acuity Partners Limited held by DFCC Bank PLC. Finality to be reached with regard to the revised terms and conditions, subject to regulatory clearances,” DFCC stated.  

Similarly, on December 13, 2024, HNB’s board granted its consent to move forward with the discussions.

Acuity Partners currently operates as a joint venture between HNB and DFCC Bank. 

On August 30, this year, the board of directors of DFCC granted approval to divest DFCC’s 50 percent stake in Acuity Partners, for Rs.7 billion, to HNB. However, DFCC Bank in November this year announced that the bank had reversed its decision to sell its stake in Acuity Partners to HNB, while noting that it remains open for discussions.

Meanwhile, the two banks noted that further communication would follow, once a final agreement is reached. 

“Further communication in this regard will follow, once the bank and HNB PLC reach a final agreement with respect to the sale and obtaining the necessary regulatory clearances,” it stated.