This archive report was first published on 25 August 2020.
Co-operative Bank of Kenya Limited (Co-op Bank) has finalized the acquisition of 90% of Jamii Bora Bank, renaming it Kingdom Bank Limited.
On March 10, 2020, Co-op Bank published a Cautionary Announcement regarding discussions to acquire 100% of Jamii Bora Bank Limited, subject to due diligence, approvals of the respective Board of Directors and Shareholders, and regulatory authorities.
The Board of Directors of Co-op Bank made an offer to subscribe for a New Class of Ordinary Shares in Jamii Bora Bank for an aggregate Subscription Price of Sh1 billion, resulting in Co-op Bank owning 90% of the issued share capital of Jamii Bora Bank.
On June 3, 2020, the Board of Directors of Jamii Bora Bank accepted the offer made by Co-op Bank. Shareholders of Jamii Bora Bank unanimously resolved to allot 224,153,541 Class A ordinary shares to Co-op Bank for an aggregate subscription price of Sh1 billion at a Special General Meeting held on July 1, 2020.
Upon allotment of the New Shares, Co-op Bank would be entitled to 90% of the voting rights in the Company, 90% of the distributable profits of the Company, and the right to appoint all the members of the Board of Directors of Jamii Bora Bank.
The Capital Markets Authority and the Competition Authority of Kenya each approved the Proposed Transaction on July 6, 2020, and August 3, 2020, respectively. The acquisition was ratified in the next annual general meeting of Co-op Bank.
Following Central Bank of Kenya approvals, the former Jamii Bora Bank has changed its name and will now operate as Kingdom Bank Limited.
Co-op Bank appointed a new Board chaired by Margaret Karangatha to drive the needed Transformation Agenda. Other Board members include Macloud Malonza, Julius Sitienei, Dr Gideon Muriuki, and Anthony Mburu, the Managing Director & CEO.
