The Commonwealth Development Corporation (CDC) a United Kingdom public company has sold its 10% stake in DFCU bank to the Danish company IFU at cost of Shs 49.9 billion.
At a press briefing, officials from CDC said it was time to venture into other aspects of development in the country other than banking
Six years ago CDC embarked on a strategy to exit DFCU bank by lowering its shares from 60% to 15 % in 2013 following the rights issues at the company remaining with only 10 percent stake in the company
On Thursday morning the group made an announcement selling its entire stake.
“We have sold our shares in DFCU bank, the corporation is looking to invest more money in other ventures mainly agriculture,” said Seema Dhanani, the head of CDC Kenya.
CDC sold its shares to the Danish Development Institution IFU.
Henrik Jespersen the deputy head of mission at Danish embassy Kampala said the Shs 49.9 billion will enable the Danish to invest in Uganda
Elly Karuhanga, the chairman of DFCU bank said IFU brings its financial capability to the bank but lost the big financial muscle of CDC.
But what does CDC’S exit from the stock exchange in Uganda means to the security exchange market?
For now SCB Mauritius investment fund for development has the majority stake in DFCU at 58.70% while the National Social Security Fund controls 9.97%.