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Co-operative Bank of Kenya (Co-op Bank) yesterday unveiled a new board for Jamii Bora bank, the lender it acquired recently.
The five-member Board will be chaired by Margaret Karangatha and is expected to give a fresh impetus and a long term lifeline to the ongoing transaction that will now see the mid-tier bank renamed Kingdom Bank Limited following approval by the Central Bank of Kenya.
The bank has also tapped Anthony Mburu as the new entity’s Chief executive from its credit department and will rely on his 25 years’ experience in the banking sector and notably in Risk and Credit Management to provide growth and needed leadership.
Co-operative Bank fully acquired a controlling 90 per cent stake of Jamii Bora bank last month – a troubled lender that was also the target of CBA Bank, before the latter merged with NIC bank.
“The Transaction has now been completed and Co-op Bank appointed a new Board as hereunder to drive the needed Transformation Agenda…pursuant to Central Bank of Kenya approvals, the former Jamii Bora Bank has changed its name and will now operate as “Kingdom Bank Limited”, said Co-op’s Chief executive Gideon Muriuki.
The new Board will be expected to provide leadership and guidance to steer Jamii Bora bank through the transition and eventual integration within the Co-op bank Group – a lender that has an asset base of over Sh 513 billion, and is largely owned by the over 15 million member Kenya Co-operative movement.
The bank also has five other affiliate subsidiaries including an insurance agency with a physical presence in South Sudan.
The announcement to buy Jamii bora bank was first made public on July 1 during Co-op’s annual general meeting in a deal that saw shareholders of Jamii Bora bank approve 90 per cent buyout of the bank.
Capital Markets Authority (CMA) and the Competition Authority of Kenya (CAK) both approved the Proposed Transaction on 6th July, 2020 and 3rd August, 2020 respectively – with the acquisition to be ratified in the next annual general meeting of Co-op Bank.
The transaction, to be undertaken through the payment of 224,153,154 new class of Ordinary Shares, will see Co-op Bank inject Sh1 billion into Jamii bora and upon allotment of the New Shares, Co-op Bank would be entitled to 90 per cent of the voting rights in the company, 90 per cent of the distributable profits of the company.
Last week, the Co-operative Bank announced a Sh7.2 billion profit after tax for the first six months of 2020 in a 3.6 per cent dip in earnings due to Covid-19 knocks.
The bank said profits fell from Sh7.5 billion same period last year, even though the bank’s pretax profits registered a growth of Sh.9.6 billion for the period, compared to Sh10.44 billion last year.