Jamii bora shareholders have given the greenlight for the bank’s majority stake by Co-operative bank in a meeting held yesterday.
With the approval, Co-op will now acquire 90 percent of Jamii Bora’s stake through the subscription of 22,153,154 new category of ordinary shares that would enable the injection of capital to the tune of Ksh1 billion and the appointment of a board to run the business.
Co-op is looking to bank on Jamiii Bora’s niche in MSME banking and trade finance solution through Jamii Bora leasing Limited and the Jamii Bora insurance Agency Limited.
“This acquisition will strengthen both institutions leveraging on Co-operative’s Bank established universal banking model,’’ said Co-op Bank CEO Gideon Muriuki.
Further, Co-op will seek to leverage on Jamii Bora’s network which combines 444,000 customers and 17 national branches, to further solidify on its market position.
In terms of asset base, Co-operative Bank is Kenya’s fourth largest lender after KCB, Equity and NCB and has an asset base exceeding Ksh 470 billion drawn from its substantial Co-operative movement of 15 million members.
Co-op became Jamii Bora’s new suitor earlier this year after CBS bank let go of its bid for the lender to merge with NIC creating the present NCBA group.
The acquisition is now set for regulatory approval by both the Central bank of Kenya (CBK) and the Capital Markets Authority (CMA).