Cooperative Bank of Kenya officially acquired 90 percent stake in Jamii Bora Bank on August 21. FILE PHOTO | NMG Some of the recent merger and acquisitions activity cut across key sectors including financial services, renewable energy and technology. This is expected to intensify. Below are some of the top deals for 2020. Co-operative Bank acquires Jamii Bora Bank for Sh1bn
Cooperative Bank of Kenya #ticker:COOP officially acquired 90 percent stake in Jamii Bora Bank on August 21.
Co-op Bank had early March opened talks to buy a majority stake in Jamii Bora Bank. The two parties valued the deal at Sh1 billion, which was endorsed by Jamii Bora shareholders marking further consolidation in the East African nation’s banking industry.
Co-op Bank is the country’s third-biggest bank by market share with nearly 10 percent of the domestic market. In the deal, Co-op Bank was issued with 224.1 million new “Class A” shares equivalent to 90 percent shareholding, while the stake of the existing Jamii Bora shareholders were diluted to 10 percent.
Jamii Bora Bank has been renamed to Kingdom Bank Limited and a new chief executive officer appointed in major changes by Cooperative Bank of Kenya.
Co-op Bank’s growth strategy has been more focused on expanding in Kenya as opposed to expanding beyond borders. Outside Kenya, the lender owns 51 percent stake in Co-op Bank South Sudan. It also holds stakes in Kingdom Securities, CIC Insurance #ticker:CIC and Co-op Fleet Africa Leasing Limited. Egypt’s Commercial International Bank acquires Mayfair Bank
Egypt’s largest private lender, Commercial International Bank (CIB), announced this year it would inject Sh3.7 billion ($35 million) into Mayfair Bank following its acquisition of a majority stake in the Kenyan tier three lender.
The acquisition by CIB, which now controls 51 percent shareholding in the bank, will see the lender operate under the new name of Mayfair CIB. CIB was established in 1975 as a joint venture between National Bank of Egypt and Chase Manhattan Bank.
CIB is Egypt’s leading private-sector bank and is listed on the Cairo Stock Exchange, the London Stock Exchange and the New York Stock Exchange.
The lender has a network of over 200 branches in Egypt, two representative offices in Dubai (United Arab Emirates) and Ethiopian capital Addis Ababa. Mayfair is Kenya’s fourth-smallest lender with a market size index of 0.17 percent as at February, according to CBK data.
The bank was licensed in June 2017. Its losses rose 37 percent […]