Govt gets sh868m Stanbic dividend

Jun 09, 2005

STANBIC Bank has handed a sh868m cheque to the Government as dividend for its 10% shares in the bank.

By Sylvia Juuko
STANBIC Bank has handed a sh868m cheque to the Government as dividend for its 10% shares in the bank.
Kitili Mbathi, the managing director of Stanbic, handed over the cheque to privatisation state minister, Prof Peter Kasenene, at the finance ministry boardroom on Wednesday.
Mbathi said as part of the sale agreement, there was a shortfall in the value of the bank, which would be recovered through withholding of dividends.
“The gross dividend for the Government share, which is 10% in Stanbic was sh3.5b. But there was an amount which was due by the Government to Stanbic regarding acquisition, which came to about sh2.6b and left a net amount of sh868m,” he said.
Mbathi said as part of the agreement, the Government would list 10% while Stanbic would list an additional 10% on the stock exchange.
“We will start discussions with the Privatisation Unit to see how quickly we can list. We feel now is the right time since our network has stabilised,” he said.
Stanbic took over former Uganda Commercial Bank in February 2002 and has upgraded and computerised the 66-branches countrywide.
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