This archive report was first published on 16 June 2020.
On June 3, 2020, the board of Jamii Bora Bank held a special meeting to discuss the proposed acquisition by Cooperative Bank.
According to Jamii Bora Bank Chairman Richard Kiplagat, the board approved the acquisition after a thorough due diligence process.
"Following the conclusion of a thorough due diligence and a special board meeting held on Wednesday, June 3, 2020, the board approved for recommendation to the shareholders a legally binding offer from Cooperative Bank," said Kiplagat in a statement on Tuesday.
A special general meeting of shareholders will be held on July 1, 2020, to obtain the requisite shareholder approval.
The proposed acquisition by Cooperative Bank is expected to inject significant capital into Jamii Bora Bank and enable the lender to leverage on the combined skills of both entities to serve its clients.
However, the details of the deal, including the amount of capital to be injected, remain under wraps as the buyout has not received all the necessary nods.
Commercial Bank of Africa had previously made a Sh1.4 billion offer to buy out Jamii Bora Bank, but the deal did not go through.
"The board wishes to emphasise that the discussions are yet to receive all necessary shareholder regulatory approvals and as such, only limited information can be disclosed at this stage," said Kiplagat.
Completion of the deal will require approval from the CMA, Competition Authority of Kenya, and Central Bank of Kenya, as well as shareholders of the two entities.
