CDC seeking to reduce shareholding in Dfcu Bank

Kampala. CDC Group, a UK-based development finance institution, according sources close to the matter, is considering to shed more shareholding from Dfcu.
The firm, which has over the years reduced its shareholding to about 10 per cent from 60 per cent, however, yesterday declined to comment on the matter but affirmed its commitment to help Dfcu’s growth agenda.
In an email yesterday, Mr Rhyddid Carter, the CDC Group communications manager, could not deny or confirm the development.

“… we don’t normally comment on leaked information and we are not commenting on any sale process,” he said.
Mr Juma Kisaame, the Dfcu managing director and Mr William Ssekambe, the bank’s executive director, said they could not comment on a shareholders matter.

“That is a shareholders matter, Dfcu Bank is just a subsidiary of Dfcu Group,” Mr Ssekambe said in a telephone interview, adding selling shares was a normal exercise for any listed company.
CDC, according to Kisaame has been a shareholder of Dfcu for 54 years and currently holds a 10 per cent stake.

In 2013, CDC shed a significant part of its shareholding to give way to “like-minded investors who could bring in a new phase of growth”.
“We remain committed to that decision to step back from our involvement with Dfcu, which dates back to 1964,” Mr Carter said then.
According to sources familiar with the matter, CDC has already written to Dfcu Group indicating its decision to shed more shares.
CDC, according to details on its website holds a portfolio of $15.1m (in equity) and a $10m (in loan).

Ownership
Dfcu is owned by about nine institutional investors with Arise BV holding the largest shareholding at 59 per cent. CDC comes second in second position followed by National Social Security Fund. The company is listed on the Uganda Securities Exchange.

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