Co-op Bank renamed Jamii Bora, Kingdom Bank Limited, and hired Anthony Mburu as the new CEO and tapped its directors to serve in the board of the rebranded outfit.
The board coup marks a new low for former owners of Jamii Bora who had a right over board seats after investing hundreds of millions of shillings in acquiring stakes in the loss-making bank.
The board will be chaired by Margaret Karangatha with Co-op Bank managing director Gideon Muriuki being a member alongside Macloud Malonza, Julius Sitienei and Mr Mburu.
Cooperative Bank of Kenya #ticker:COOP has ousted the entire board of Jamii Bora Bank and named a new CEO for the lender after completing the purchase of a majority stake in smaller rivals for Sh1 billion.
Co-op Bank renamed Jamii Bora, Kingdom Bank Limited, and hired Anthony Mburu as the new CEO and tapped its directors to serve in the board of the rebranded outfit.
The board coup marks a new low for former owners of Jamii Bora who had a right over board seats after investing hundreds of millions of shillings in acquiring stakes in the loss-making bank.
The board will be chaired by Margaret Karangatha with Co-op Bank managing director Gideon Muriuki being a member alongside Macloud Malonza, Julius Sitienei and Mr Mburu.
Mr Mburu has been the director for credit management at Co-op Bank.
“The transaction has now been completed and Co-op Bank appointed a new board as hereunder to drive the needed transformation agenda,” said the bank in a statement.
Jamii Bora’s current shareholders will all be squeezed into a 10 percent stake, with Co-op Bank’s majority ownership giving it the right to appoint the lender’s board and management.
The investors, including former Jamii Bora’s chief executive Sam Kimani and his successor Tim Kabiru and private equity firm Catalyst Principal Partners, had previously eyed a combined Sh1.4 billion payday when they tried to sell the bank to former CBA Group in January 2019.
Jamii Bora’s investors investors missed an opportunity to recoup part of their capital when the talks with the former CBA Group collapsed.
Mr Kimani and Mr Kabiru, for instance, were to get an estimated Sh238 million combined through their investment vehicle Asterisk Holdings, which has a 17 percent stake in the small lender.
Catalyst Principal Partners was to get Sh224 million for its 16 percent equity while Shorecap Limited was in line for Sh238 million on its 17 percent equity.
Jamii Bora Scandinavia was to get Sh224 million for its 16 percent stake. The bank also has hundreds of individual investors.
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