Commonwealth Development Corporation (CDC) Group, a development finance institution owned by the British Government has sold off the 74,580,276 shares it held in dfcu Bank.
According to a notice published in local dailies, the shares, which translated to about 9.97 per cent were bought by Investment Fund for Developing Countries (IFU), a development finance institution owned by the Danish Government.
“This sale is a completion of CDC’s divestiture of it’s interests in dfcu following achievement of investment horizons,” the announcement reads in part.
“As founder shareholder of dfcu, CDC was committed ensuring that the sale of its shares would be to an institution with a strong and credible profile.
Although the cost of the shares has not been made public, IFU claims to have invested $150m in Africa through the Danish Climate Investment Fund (DCIF), a fund it manages.
On Monday, the management of the second biggest bank in the country advised anyone who buys or sells shares of the bank to “exercise caution when dealing in the company’s shares until a further announcement is made.
The statement said, “dfcu limited (the “company”) advises its shareholders 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 price of the company’s shares”.
Watchdog also reported that CDC’s Investment Director Irina Grigorenko, had written to dfcu Chairman Elly Karuhanga that CDC Group was intending to sell some or all of its shares.
Grigorenko, added that her group was “undertaking a review of its investment in dfcu Limited which may lead to the disposal or some of some or all of its shares in dfcu over the short to medium term.”
On its website, IFU says it provides risk capital and advice to companies wishing to do business in Africa, Asia, Latin America and parts of Europe.
“Investments are made on commercial terms in the form of equity and loans to projects. The purpose is to promote economic and social development in the investment countries. Experience through climate investment fund IFU has great experience with climate and energy/infrastructure projects from investments through the Danish Climate Investment Fund (DCIF), managed by IFU.”
The resultant changes to dfcu’s shareholding structures follows;
Arise BV 58.70 per cent
Investment Fund for Developing Countries 9.97 per cent
National Social Security Fund (Uganda) 7.46 per cent
Kimberlite Frontier Africa Naster Fund 7.35 per cent
SSB Russel Investment company 1.93 per cent
National Social Security Fund Pinebridge 1.40 per cent
Vanderbilt University 0.98 per cent
SSB-Conrad N. Hilton Foundation 0.97 per cent
Jubilee Investment Company 0.76 per cent
BoU Staff Retirement Benefit Scheme 0.60 per cent
Others 9.80 per cent
The last two years have been challenging after the controversial acquisition of Crane Bank and its properties. Bank of Uganda has failed to defend its move to close and sell Crane Bank and that has spilled over to the operations of the once quietly operating financial institution.
Dfcu bank has of late decided to return freehold properties of Meera Investments Limited which had been leased to defunct CBL, back to Bank of Uganda, at a whopping cost of Shs47 billion even though it is understood it valued the same properties at Sh10 billion when it took over CBL.
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