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UK firm takes over dfcu Bank

By Vision Reporter

Added 6th May 2003 03:00 AM

UK-based CDC Capital Partners have taken a controlling interest in dfcu Bank

UK-based CDC Capital Partners have taken a controlling interest in dfcu Bank

By Vision Reporter

UK-based CDC Capital Partners have taken a controlling interest in dfcu Bank.

Michael Turner, the CDC's East Africa Director said in a press release yesterday, “The Ugandan economy is notably under-banked and there is outstanding growth potential.”

CDC Partners bought a further 25% shareholding in dfcu Bank from the German investor DEG. CDC now own 60% of the business which they helped co-found with the Government nearly 40 years ago.

GED's Karl-Heinz Niessen said his company's policy was to exit investments after a certain period to make funds available for new projects.

“We are looking for new opportunities in Uganda and are currently helping to finance Uganda's second national telephone network".

Recently, CDC have played a more active role, providing strategic leadership through a place on the Board.

DFCU's assets have grown on average by more than 40 per cent annually over the past three years.

Dr William Kalema, the dfcu Bank chairman, said: “Having a strong controlling shareholder will improve our credit rating in capital markets and further strengthen the confidence of employees and customers."

Holdings in the bank are now CDC 60%; IFC 21.5% and Government, 18.5%.

CDC Partners, which evolved from the formerCommonwealth Development Corporation, is a leading risk capital investor in emerging markets. It now manages a portfolio of $1.5b in businesses across Africa, Latin America and Asia.

UK firm takes over dfcu Bank

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