Dfcu bank gets new shareholders as it resumes trading

 

 

By Frederic Musisi

In Summary

According to the company chairman, the move was intended to give the local bank a new face to boost its relevance in the region.

Dfcu bank has resumed trading of shares at the Uganda Securities Exchange with announcement of two new major shareholders to boost its regional viability. The new shareholders are; Rabo Development B.V, a subsidiary of Rabo bank of Netherlands with 27.54 per cent stake and the Norwegian Investment Fund for Developing Countries (NORFUND) with 27.54 per cent shares from 10.06 per cent shares. Valued at Shs 111,923,594,000 the transaction was done in lots of 43,461,797 and 68,461,797 shares, making it the biggest single transaction in the history of the Exchange

The engagement of the new shareholders pushed the financial institution last week to halt the trading of shares at the USE to allow the downsizing of shares by Commonwealth Development Corporation (CDC) from 60.02 per cent to the current 15 per cent stake.

Speaking at the trading market, Mr Sam Kibuka, the company’s board chairman, said the move was intended to give the local bank a new face to boost its relevance in the region.



“Our two new major shareholders are significant actors in the region which puts us at a new level in the banking world,” Mr Kibuuka said.

He added that the bank had also retained significant shareholders like CDC with 15 per cent, NSSF with 6 per cent, among other strategic players. USE chief executive Joseph Kitamirike, maintained the previous move was meant to ensure that there was no speculative trading on the counter.

“Our new focus is to widen our banking position and also focus on agricultural financing but does not mean that we are changing the way we have been operating.” Mr Niels Berendsen, the director-risk management retail and micro business at Rabo bank, added that the new restructuring makes a distinctive contribution, particularly in the agricultural sector where they (Rabo) have close to 150 years’ experience.

“Agriculture is still a very robust sector to the growth of Uganda and that is where all our long term investment plans are targeting.” Mr Juma Kisaame, the Dfcu managing director, added that the new partnership was intended to help the bank map out in other countries, without necessarily having to make direct capital investments.