dfcu group merges operations
Dec 09, 2007
THE Development Finance Company of Uganda (dfcu Ltd) is to merge two of its business operations. The integration, which awaits the approval of the central bank, will see the transfer of all the assets and liabilities of DFCU Ltd to dfcu Bank.
By Peter Kaujju
THE Development Finance Company of Uganda (dfcu Ltd) is to merge two of its business operations. The integration, which awaits the approval of the central bank, will see the transfer of all the assets and liabilities of DFCU Ltd to dfcu Bank.
But the shareholders have already approved the deal at an extra-ordinary general meeting in Kampala last week.
The group provides medium-and-long-term finance to private sector enterprises.
Juma Kisaame, the executive director of dfcu Bank told the shareholders that due diligence had already been done.
He said once the operations had been integrated, the business would be a strong player in the sector.
“At the moment, the businesses do not speak to one another but there will be a lot of strength after integration.
“We have an ambitious expansion plan and we want to have a footprint across the country.
“In the next three years, we want to double our branch network and we will not come to shareholders for funds because they are available,†Kasami said.
Dr. Nkosana Moyo, the dfcu Ltd board chairman, explained that the merger would generate operational synergies and broaden the range of products offered under one roof.
“Upon completion of the integration process, dfcu Ltd, the holding company, will remain a public listed entity on the stock exchange, while the financial services business of the group will be operated under dfcu Bank.
“Staff currently employed by dfcu Ltd will be transferred to the bank,†Moyo said.
The move, Moyo, added was expected to improve customer service delivery value. He also disclosed that the intergration would substantially be completed in the first quarter of 2008.
The board chairman explained that the intergration was also supported by the Uganda Securities Exchange, the stock market operator and the Capital Markets Authority, the regulator. dfcu listed on the Uganda Stock Exchange in 2004.
It is owned by the Commonwealth Development Corporation, the Uganda government, the National Social Security Fund, the National Insurance Corporation and several other investors.
THE Development Finance Company of Uganda (dfcu Ltd) is to merge two of its business operations. The integration, which awaits the approval of the central bank, will see the transfer of all the assets and liabilities of DFCU Ltd to dfcu Bank.
But the shareholders have already approved the deal at an extra-ordinary general meeting in Kampala last week.
The group provides medium-and-long-term finance to private sector enterprises.
Juma Kisaame, the executive director of dfcu Bank told the shareholders that due diligence had already been done.
He said once the operations had been integrated, the business would be a strong player in the sector.
“At the moment, the businesses do not speak to one another but there will be a lot of strength after integration.
“We have an ambitious expansion plan and we want to have a footprint across the country.
“In the next three years, we want to double our branch network and we will not come to shareholders for funds because they are available,†Kasami said.
Dr. Nkosana Moyo, the dfcu Ltd board chairman, explained that the merger would generate operational synergies and broaden the range of products offered under one roof.
“Upon completion of the integration process, dfcu Ltd, the holding company, will remain a public listed entity on the stock exchange, while the financial services business of the group will be operated under dfcu Bank.
“Staff currently employed by dfcu Ltd will be transferred to the bank,†Moyo said.
The move, Moyo, added was expected to improve customer service delivery value. He also disclosed that the intergration would substantially be completed in the first quarter of 2008.
The board chairman explained that the intergration was also supported by the Uganda Securities Exchange, the stock market operator and the Capital Markets Authority, the regulator. dfcu listed on the Uganda Stock Exchange in 2004.
It is owned by the Commonwealth Development Corporation, the Uganda government, the National Social Security Fund, the National Insurance Corporation and several other investors.