dfcu head office Eagle Online yesterday published an article saying that UK’s Commonwealth Development Corporation (CDC) Group had identified the buyer for its 9.97 per cent shares in Dfcu bank. That buyer has now been revealed as IFU- Denmark, the Danish Development Finance Institution/ Investment Fund for Developing Countries.
Yesterday dfcu published a cautionary announcement dated December 13, 2019 informing its shareholders and potential investors of the transaction now awaiting the approval of authorities in the financial sector, particularly the Capital Markets Authority which regulates the Uganda Securities Exchange on which Dfcu is listed .
“Dfcu limited…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,” Dfcu said in a recent cautionary announcement,” Dfcu said in the statement.
But the transaction, according to the announcement, remains subject to obtainment of regulatory approvals and satisfaction of all conditions precedent.
Due to expected sell of shares by the unnamed minority shareholder, the company has therefore advised shareholders and potential investors to be cautions when transacting in the company’s shares. “Shareholders and potential investors are advised to exercise caution when dealing in the Company’s shares until a further announcement is made,” the announcement reads in part.
Eagle Online last year reported that UK’s Commonwealth Development Corporation (CDC) Group was looking for another offshore company to buy its shares in Dfcu. The company owns 9.97 per cent. CDC’s Investment Director Irina Grigorenko wrote a confidential letter to Dfcu Chairman Elly Karuhanga of CDC Group’s intention to sell some or all of its shares.
Grigorenko, said then that CDC 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.”
In its letter, CDC also expressed hope that Dfcu would continue to “succeed with the support of Arise B.V., its major shareholder.” CDC’s investment in Dfcu, according to the institution’s official website, is $15.1m (equity) and $10m (subordinated loan).
About nine institutional investors own Dfcu, with Arise BV holding the largest shareholding at 59 per cent. CDC is in second position, followed by National Social Security Fund (NSSF). Months ago, Arise BV Executive Director Deepak Malik resigned from the Dfcu bank’s board of directors.
When asked, analysts said it is normal for shareholders to sell their shares within or […]