Co-operative bank given green-light to acquire Jamii Bora
The shareholders of Jamii Bora bank has approved the acquisition of the lender’s majority stake by the Co-operative Bank of Kenya in meeting held Wednesday.
The green-light approves Co-op’s offer to acquire 90 percent of Jamii Bora’s stake through the subscription of 224,153,154 new class of ordinary shares that would enable the injection of capital to the tune of Ksh.1 billion and the appointment of a board to run the business.
Co-op is seeking to leverage on Jamii Bora’s niche in MSME banking and trade finance solutions through Jamii Bora Leasing Limited and the Jamii Bora Insurance Agency Limited.
“This acquisition will strengthen both institutions leveraging on Co-operative’s Bank established universal banking model,” said Co-op Bank CEO Gideon Muriuki.
Co-op bank will further be seeking to tap on Jamii Bora’s network which incorporates 444,000 customers and 17 branches across the country to further solidify on its market position.
The Co-operative Bank is Kenya’s fourth largest lender by asset base after KCB, Equity and NCBA and has an asset base exceeding Ksh.470 billion drawn from its heavy co-operative movement base of 15 million members.
Co-op became Jamii Bora’s new 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 is now the subject of regulatory approval by both the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA).