The shareholders of Jamii Bora bank has approved the acquisition of the lender’s majority stake by the Co-operative Bank of Kenya.
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 manage 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.
The acquisition is subject to due delligenc, approvals by shareholders of both Co-op bank and Jamii Bora and requisite regulatory authorities.
“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 became Jamii Bora’s new suitor earlier this year after CBA bank dropped its bid for the lender.
CBA later dropped it’s acquisition plans and merged with NIC forming the present NCBA Group.
The acquisition will see Co-op bank tap on Jamii Bora’s wide 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.