The shareholders of Jamii Bora banks has issued an approval for the acquisition of the lender’s majority stake by the Co-operative Bank of Kenya.
The go-ahead approves Co-op Bank’s offer to acquire 90 percent of the Jamii Bora stake through the subscription of 224,153,154 new class of ordinary shares that would allow injection of capital to the tune of Ksh1 billion as well as the appointment of a board to run the bank.
Co-op wants to leverage on Jamii Bora’s niche in MSME banking and trade finance solutions through Jamii Bora Leasing Limited as well as Jamii Bora Insurance Agency Limited.
“This acquisition will strengthen both institutions leveraging on Co-op’s Bank establishing a universal banking model,” said Co-operative Bank CEO Gideon Muriuki.
Co-op Bank will also seek to tap on Jamii Bora’s network which incorporates 444,000 clients and 17 branches across the nation to solidify its market position.
Co-operative Bank is the fourth-largest lender by asset base in Kenya after KCB, Equity, and NCBA. The lender has an asset base exceeding Ksh470 billion drawn from its heavy co-operative movement base of 15 million members.
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The lender became Jamii Bora suitor earlier this year after CBA bank dropped its bid for the lender to merge with NIC creating the present NCBA Group.
The acquisition of Jamii Bora Bank by Co-op has now been left for regulatory approval by both the Central Bank of Kenya and the Capital markets Authority (CMA).
