Dfcu Limited has finally confirmed that Britain’s Commonwealth Development Corporation (CDC) Group sold 74,580,276 shares which make up 9.97 per cent of the total 748, 144,033 ordinary shares.
Like Eagle Online reported earlier, the shares were sold to the another Nordic mafia the Investment Fund for Development Countries, owned by the Danish Government.
Days ago Dfcu in a cautionary announcement disclosed that CDC would sell its shares after receiving approvals from authorities, given that Dfcu is listed on the Uganda Securities Exchange, regulated by the Capital Markets Authority.
Eagle Online last year reported that CDC Group was looking for another offshore company to buy its shares in dfcu. 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.” It is said CDC Group were not happy Dfcu’s controversial acquisition of Crane Bank Limited.
When asked, analysts said it is normal for shareholders to sell their shares within or get buyers from outside when they think it is the right time to exit. However, he hastened to add that some shareholders exit when they anticipate that the company’s business in future might not be profitable at the level they want it.
However, the latest announcement that a significant minority shareholder has got the buyer of its shares comes at the time when Dfcu is facing challenges following the controversial acquisition of Crane Bank Limited (CBL) in January 2017. Dfcu Limited is the holding company of Dfcu bank which bought CBL as offered to it by the Bank of Uganda (BoU).
Recently Dfcu bank realised that it could not take up freehold properties of Meera Investments Limited which had been leased to defunct CBL. Dfcu now wants BoU to compensate it for the loss of the properties it values at Shs47 billion even though it is understood it valued the same properties at Sh10 billion when it took over CBL an estimated Shs200 billion.
Rune Norgaard, IFU’s Communication Director, says the institution, an independent government agency provides risk capital and advice to companies wishing to set up business in Africa, Asia, Latin America and parts of Europe. Investments are made on commercial terms in the form of equity and loans. The purpose is to contribute to economic and social development in the investment countries.
IFU and IFU managed funds have co-invested in close to 1300 companies in 100 countries in Africa, Asia, Latin America and parts of Europe.