Our Offer Was Best, Says dfcu

By Yunusu Abbey THE dfcu Group has insisted that it offered the best bid for Uganda Commercial Bank Limited (UCBL). In an October 16 letter to Emmanuel Tumusiime Mutebile, the Bank of Uganda (BOU) Governor, Dr. William Kalema, the dfcu Group chairman, challenged BOU to issue a public statement on the bids. “In our meetings with you, we were able to articulate our financial bid. Our offer was sh42.9b (US$25m) in cash and unwanted UCBL assets, upon signing, followed by five-yearly payments of sh8.8b. The Government of Uganda was to retain its 18.5% shares in the Group,” the letter said in part. “We made the best offer we could under the circumstances and we are satisfied that our case was heard,” said the letter, which The New Vision saw yesterday. It added, “We would suggest, in the interest of clarity, that an official statement be issued by the BOU, summarising the essential elements of our bid in a way that would be easily understood by the public. “We are encouraged by your view of dfcu Group as a positive influence in the development of Uganda’s financial sector. We will endeavour to meet your highest expectations in that regard.” The letter said, “Regarding the position of our correspondences with you being leaked to the press, please be assured that we have observed the strictest confidentiality on all subjects of the bid process.” On Monday, BOU board declared Stanbic winner. Dfcu Bank were the other bidders. Stanbic reportedly offered to buy the 80% UCBL shares at US$19m and to pay up front 80% of the bid price, which is about US $15.2m. The 20% balance of about US$3.8m would be paid within one year. dfcu said it had adhered to the confidentiality agreement with the BOU. This was in apparent reference to BOU concern that some reports had been leaked to the press. Ends