DFCU clears air on shareholder selling stake from bank; ‘We are still strong’
Dfcu bank has cleared the air on reports of one of their shareholders who recently indicated that they are reducing their stake from the bank.
The Commonwealth Development Corporation (CDC) a UK-based development financial institution recently notified fellow shareholders and board that they would sell their stake in Uganda’s DFCU bank “very soon.”
Keep Reading
The announcement raised doubt over the future of the Ugandan bank.
On Friday, the Dfcu Limited chairman Dr. Elly Karuhanga admitted that CDC would soon be leaving the bank but said this would not affect them in any way.
“The bank(Dfcu) is not only strong but also powerful and the future is absolutely bright,”Dr.Karuhanga told journalists on Kampala on Friday afternoon.
He explained that Dfcu was formed in 1964 with CDC owning 25 percent shares, Uganda Development Corporation 25%,IFC (world bank) 25% and DEG 25% but in 2004 the bank was listed on the stock exchange prompting CDC to buy out more shares from UDC and DEG.
He however added that CDC reduced its shareholding capacity from 60 percent to 9.97 percent in the recent years rendering them from being the largest shareholder in Dfcu Limited.
“Arise BV holding bought most of the shares held by CDC to own 58.7 percent shares and the rest of the shares are owned by other people including NSSF,” the Dfcu Limited chairman said.
“The bank is still on a firm and solid ground despite CDC indicating to sell out their stake. The bank(Dfcu) has since grown from being number six to number two and now aiming at being the leading player in the industry.”
Asked to comment on the fraudulent takeover of the defunct Crane bank by Dfcu, Karuhanga said they went through the due process before acquiring the bank.
“Bank of Uganda took over Cranes bank and placed it under receivership .We(Dfcu) together with 12 other companies put in our bids and we became the successful company,”Karuhanga said.
“It was the Central bank that took the decision to have Dfcu take over Crane bank.”
