This archive report was first published on 2 July 2020.
On 1st July 2020, the shareholders of Jamii Bora Bank unanimously approved Co-op Bank's offer to acquire 90% of the bank. This acquisition will be through the subscription of 224,153,154 new class of Ordinary Shares, enabling Co-op Bank to inject Kshs.1 Billion and appoint a Board to run the business.
Co-op Bank is one of the largest banks in the region, with an asset base of over Kshs.470 billion, predominantly owned by the over 15 million member Kenya Co-operative movement. The bank has a strategic niche in MSME banking, offering working capital and trade finance solutions.
As part of the acquisition, Co-op Bank will also acquire Jamii Bora Leasing Limited and Jamii Bora Insurance Agency Limited. The next steps will now be the regulatory approvals from Central Bank of Kenya, Capital Markets Authority, and the Competition Authority of Kenya.
Co-op Bank had a profit of Kshs.20.7 Billion as at 31st December 2019 and paid out over Kshs.5.9 Billion in dividends to its shareholders on 23rd April 2020.
