The Co-operative Bank of Kenya is set to acquire 90 percent of Jamii Bora Bank after the approval of shareholders of Jamii Bora Bank during the Annual General Meeting (AGM).
Co-op Bank will take over the 90 percent of Jamii Bora through the subscription of 224,153,154 new class of Ordinary Shares that would enable Co-op Bank to inject 1 billion shillings.
“Co-op Bank has been pleased to note 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 90% of the bank,” said Co-op in a statement.
The Co-operative Bank Group is one of the largest banks in the region with an asset base of over 470 billion shillings, predominantly owned by the over 15 million member Kenya Co-operative movement.
“The strategic entry of Co-op Bank coming in as a 90 percent 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,” said Co-op
According to the lender, the acquisition will strengthen both institutions leveraging on the Co-operative Bank’s well-established Universal Banking model as well as our successful business Transformation Agenda/Turnaround riding on the bedrock of the 15 million-member co-operative movement and a 470 Billion shillings balance sheet.
Co-op Bank had a profit of 20.7 Billion shillings as of 31st December 2019 and on 23rd April 2020 paid out over Kshs.5.9 Billion in dividends to our shareholders.