Co-operative Bank of Kenya has finalised talks to acquire 100 per cent stake in Jamii Bora Bank.
Jamii Bora shareholders are now set to vote on July 1 on the buyout offer.
Jamii Bora Tuesday said it had received a binding offer from Cooperative Bank of Kenya in a deal that was first disclosed by the Central Bank of Kenya (CBK) on March 11.
The deal is the latest instance of consolidation in Kenya’s banking industry and will see Cooperative Bank inject additional capital into Jamii Bora which, for instance, has suffered liquidity shortfalls that remain below the regulatory minimum.
“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 Jamii Bora Bank chairman Richard Kiplagat.
“A special general meeting of shareholders will be held on July 1, 2020 to obtain requisite shareholder approval,” he said.
Jamii Bora declined to disclose details of the offer, including the purchase price and whether it will be absorbed by Cooperative Bank and run as standalone subsidiary.