• EDITORIAL POLICY
  • ABOUT US
PML Daily
No Result
View All Result
  • Home
  • NEWS
    • Politics
    • Education
    • Regional
    • Africa
    • World
  • INVESTIGATIONS
    • National Archives
    • Special Reports
  • OpEd
  • BUSINESS
    • Agriculture
    • Tech
    • Finance
  • FEATURES
    • Health
    • Tours & Travel
    • Entertainment
    • Society
  • COLUMNISTS
    • The Suited Penguin
  • SPORT
  • Jobs
  • Magazines
  • Home
  • NEWS
    • Politics
    • Education
    • Regional
    • Africa
    • World
  • INVESTIGATIONS
    • National Archives
    • Special Reports
  • OpEd
  • BUSINESS
    • Agriculture
    • Tech
    • Finance
  • FEATURES
    • Health
    • Tours & Travel
    • Entertainment
    • Society
  • COLUMNISTS
    • The Suited Penguin
  • SPORT
  • Jobs
  • Magazines
No Result
View All Result
PML Daily
No Result
View All Result
Home BUSINESS

British investors CDC quit dfcu Bank as Danish firm eyes shares

JAVIRA SSEBWAMI | PML Daily Staff WriterbyJAVIRA SSEBWAMI | PML Daily Staff Writer
December 17, 2019
42 2
44
SHARES
624
VIEWS
FacebookWhatsAppTwitter
Reports indicate that CDC is looking for another offshore company to buy its shares in dfcu bank (PHOTO/File)

KAMPALA – British’s Commonwealth Development Corporation (CDC) Group is selling its entire 9.97% stake in dfcu Bank – a move that according to commentators could shake up the country’s financial landscape.

CDC Group has been a long-time shareholder in the venerable bank, which for most of the British investors to Uganda have been using.

dfcu Bank on Monday, December 16, 2019, published in the local dailies, a cautionary statement, dated 13th December 2019 informing its stakeholders of an imminent acquisition deal.

“dfcu Limited (the “Company”) advises its stakeholders and the general public that a significant minority shareholder has received and accepted an expression of interest for the purchase of its shareholding in the Company by another investor which if successfully concluded, may have a material effect on the company shares,” dfcu Bank noted warning its shareholders and potential investors to exercise caution when dealing in the bank’s shares until a further announcement is made.

This website has learnt that Danish Development Finance Institution is the preferred investor to acquire 9.97% shareholding held by CDC Group Plc in dfcu Bank.

dfcu Bank is Uganda’s 4th largest bank, by assets as at end of December 2018 but its shares continue to trade near all-time lows – posting losses in the past three years to shareholders.

dfcu Bank has been in turmoil after risky investment banking bets and criminal behavior resulted in lawsuits by businessman Sudhir Ruparelia.

dfcu which is majority-owned by Arise B.V (58.7%) has three significant minority shareholders, namely: CDC Group of the United Kingdom that holds 9.97%, National Social Security Fund (NSSF) of Uganda with 7.46% and Kimberlite Frontier Africa Naster Fund that holds 7.35%.

Local media, the CEO Magazine quoting Andrew Murray-Watson, the Corporate Communications Advisor at CDC, reported that he declined to comment.

“In response to your inquiry, I am unable to comment. Sorry not to be of more assistance,” he replied to a journalist who had inquired about the imminent transaction.

However, CDC Group Plc which is wholly owned by the UK Government had in June 2018 indicated that it was “undertaking a review of its investment in dfcu Limited which may lead to the disposal of some or all of its shares in dfcu over the short to medium term.”

For such a deal to go through, it would have to be approved by the Central Bank but Dr. Tumubweine Twinemanzi, the Executive Director, Supervision at Bank of Uganda in a phone interview with this reporter declined to confirm if indeed it was the Danish Development Finance Institution that was acquiring CDC’s stake but confirmed that there were entities being vetted by the Central Bank for this acquisition.

Share this:

  • Twitter
  • Facebook

Related

Leave a comment

Tags: Andrew Murray-WatsonAriseArise B.Vcdc groupCEO magazinedfcudfcu ownerstop

Get real time update about this post categories directly on your device, subscribe now.

Unsubscribe


About

The PML Daily, published via www.pmldaily.com is a publication of Post Media Ltd, a professional Digital/New Media company in Uganda.

Follow us



  • EDITORIAL POLICY
  • ABOUT US

© 2023

No Result
View All Result
  • Home
  • NEWS
    • Politics
    • Education
    • Regional
    • Africa
    • World
  • INVESTIGATIONS
    • National Archives
    • Special Reports
  • OpEd
  • BUSINESS
    • Agriculture
    • Tech
    • Finance
  • FEATURES
    • Health
    • Tours & Travel
    • Entertainment
    • Society
  • COLUMNISTS
    • The Suited Penguin
  • SPORT
  • Jobs
  • Magazines

© 2023

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist