The Central Bank of Kenya (CBK) has announced a proposed acquisition of Jamii Bora Bank by Cooperative Bank of Kenya Limited.
The Board of Directors of Cooperative Bank of Kenya Limited has approved the progression of discussions with Jamii Bora Bank Limited, which if successful, would lead to the Cooperative Bank of Kenya Limited acquiring the 100 % shareholding in Jamii Bora Bank Limited’, a cautionary announcement by Coop Bank in the local dailies stated in part.
In January 2019, Commercial Bank of Africa (CBA) made a Sh1.4 billion cash offer to buy out Jamii Bora Bank. CBA dropped that dream after sealing a deal with NIC Bank in October 2019; in what came to be known as NCBA Bank Group.
The NIC and CBA merger brought an end to speculation over Kenyatta family buying out Jamii Bora Bank.
The Cooperative Bank is one of the largerst banks in Kenya with an asset base of over Sh450 billion; Jamii Bora bank has an asset base of Sh12.5 billion.
The acquisiiton of Jamii Bora by Coop Bank, if successful, may have a material effect on the price of the Company’s securities. Accordingly, shareholdedrs and the ivesting public are advised to exercise caution whn dealing with the Company’s securities”, the cautinary stament written and signed by Coop Bank Company Secretary Samuel M. Kibugi concluded
Further announcements on the transaction which has now been announced by the industry regulator CBK will be made in the coming weeks.
Coop Bank is predominatly owned by a 15 million member cooperative moovement in Kenya; whereas Jamii Bora Bank has over 350,000 customers.
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