Shareholders of Jamii Bora Bank have unanimously approved Co-op Bank’s offer to acquire 90 percent of the bank.
This will be through the subscription of 224,153,154 new class of Ordinary Shares that would enable Co-op Bank inject Ksh1 billion and appoint a Board to run the business.
The Co-operative Bank Group is one of the largest banks in the region with an asset base of over Ksh470 billion, pre-dominantly owned by the over 15 million member Kenya Co-operative movement. The following are the related companies;
Jamii Bora Bank is a fully-fledged Commercial Bank, licensed and regulated by the Central Bank of Kenya, with over 444,000 customers in 17 branches and employs over 190 staff.
The Bank has a strategic niche in MSME banking, offering working capital and trade finance solutions.
“The next steps will now be the regulatory approvals notably from Central Bank of Kenya, Capital Markets Authority and the Competition Authority of Kenya,” said Co-op Bank in a statement.
The strategic entry of Co-op Bank coming in as a 90% strategic owner is an “Inclusive Growth Model” that particularly safeguards the existing shareholders of Jamii Bora; in that they will now share in the expected future Transformation gains/profitability growth.
“This acquisition will strengthen both institutions leveraging on the Co-operative Bank’s well-established Universal Banking model as well as our successful business Transformation Agenda/Turnaround riding on the bedrock of the 15 million member co-operative movement and a Kshs.470 Billion balance sheet,” added the statement.
Co-op Bank had a profit of Ksh20.7 Billion as at December 31, 2019 and on April 23, 2020 paid out over Ksh5.9 Billion in dividends to our shareholders.