Kenya’s second-leading bank, Co-op Bank has announced that the shareholders of Jamii Bora Bank, have pursuant to an Extra-Ordinary General Meeting held on 1st July 2020 unanimously approved Co-op Bank’s offer to acquire 90pc of the bank.
“This will be through the subscription of 224,153,154 new class of Ordinary Shares that would enable Co-op Bank to inject Sh1 Billion and appoint a Board to run the business.”The bank said in a statement.
Co-op bank is one of the largest banks in the region with an asset base of over Sh470 billion, predominantly owned by the over 15 million member Kenya Co-operative movement. The bank has made huge treads in innovations such as the recent Instant debit card Launched in Harambee Sacco.
On the other hand Jamii Bank boasts of a customer base of over 444,000, with 17 branches across the country and over 190 employees who are set to greatly benefit from the inclusive growth model with Co-op Bank through transformation and profitability growth.
“The acquisition of Jamii Bora by Coop Bank will have a material effect on the price of the Company’s securities. Accordingly, shareholders and the investing public are advised to exercise caution when dealing with the Company’s securities. 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.”
“The next steps will now be the regulatory approvals notably from Central Bank of Kenya, Capital Markets Authority and the Competition Authority of Kenya,” read the statement by Co-op bank.
Co-op Bank recorded a profit of Sh20.7 Billion as at 31st December 2019 and on 23rd April 2020 paid out over Sh5.9 Billion in dividends to shareholders.
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