Shareholders of Jamii Bora Bank have unanimously approved Co-op Bank’s offer to acquire
90% of the bank. This follows an Extra Ordinary General Meeting held on 1 st July 2020
In a statement, Coop Bank said the stake will be through the subscription of 224,153,154
new class of Ordinary Shares that would enable Co-op Bank inject Kshs.1 Billion and appoint a Board to run the business.
What follows next will now be the regulatory approvals notably from Central Bank of Kenya, Capital Markets Authority and the Competition Authority of Kenya.
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 it’s successful business Transformation Agenda/Turnaround riding on the bedrock of the 15 million member co-operative movement and a Kshs.470 Billion balance sheet. Co-op Bank had a profit of Kshs.20.7 Billion
The Co-operative Bank Group is one of the largest banks in the region with an asset base of over Kshs.470 billion, pre-dominantly owned by the over 15 million member Kenya Co-operative movement. It’s subsidiary include the Co-operative Bank of Kenya Limited, Co-optrust Investment Services Limited with 100% stake, Co-op Consultancy & Insurance Agency Limited also with 100% stake, Kingdom Securities Limited with 60% stake, and Co-operative Bank of South Sudan Limited with a 51% stake.
Meanwhile, 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. Jamii Bora Bank also has the Jamii Bora Leasing Limited and Jamii Bora Insurance Agency Limited.