Stanbic to venture into non-banking business

BUSINESS

Stanbic Bank Uganda Limited (SBU) has proposed a venture into non-banking investment opportunities to increase shareholder dividend and profitability.

In a public notice dated February 19, 2018, the bank says a board of directors meeting held on February 14, resolved that the proposal be floated to shareholders. In the corporate re-organisation, the bank will establish a holding company.

"The group would comprise a non-operating holding company (the current listed company), a banking subsidiary and other non-banking subsidiaries," the notice says.

Adding: "The board anticipates that the proposed structure will increase the returns of its shareholders while enhancing the value proposition to its customers. The proposed re-organisation will have no diverse impact on SBU's current shareholders, customers and employees."

Company secretary Candy Wekesa-Okoboi says finer details of the entity's re-alignment will be communicated to shareholders in a circular, with notice on the next annual general meeting.

However, the re-alignment will be subject to all the requisite regulatory approvals from regulator Bank of Uganda. 

The bank has advised the public and shareholders that until an authoritative position on the proposal is communicated, caution must be exercised when trading in SBU shares at the Uganda Securities Exchange (USE).

SBU factfile

SBU's business licence portfolio entails merchant banking, stock brokerage and financial advisory.

The current SBU took shape in February 2002 when the Government sold its 90% controlling stake in Uganda Commercial Bank to South Africa banking entity Stanbic Africa Holdings Limited (SAHL)

In 2017, Insurance Regulatory Authority authorised the bank to trade in insurance products.

Shareholders

The SBU stock breakdown, as of December 2016, has SAHL as with 80% stake.
National Social Security Fund (Uganda) has 2.15%, while Duet Africa Opportunities Master Fund has 1.15%.

Tycoon Sudhir Ruparelia has 0.65%, followed by Kuwait Investment Authority 0.48% stake. SBC Mauritius Re Africa Opportunity Fund LP has 0.48%, and Central Bank of Kenya Pension Fund has 0.45%.

Duet Gamla LIV Africa Opportunities Fund stake stands at 0.43%, while Ibrahim Kironde Kabanda has 0.40% stake. Frontura Global Frontier Fund LLC has 0.39%, while the remaining 13.42% is shared by other investors. ENDS