DFCU bank has announced that shareholders of former Crane Bank Limited have filed a claim in the English High Court over its takeover of some assets and liabilities of the bank in 2017.
DFCU Bank is a subsidiary of DFCU Limited. Arise BV, the majority shareholder in DFCU Limited is co-owned by Norfund, the Netherlands Development Finance Company, and Rabobank. Arise invests in African financial institutions.
Under Rule 36 of the Uganda Securities Exchange Listing Rules, 2021, listed companies are required to release an announcement giving details of a circumstance or event that have or is likely to have a material effect on the financial results.
In a notice to Uganda Securities Exchange, DFCU Limited announced that: “dfcu Limited (“dfcu”) advises its shareholders and the public that a claim has been issued in the English High Court against it and its subsidiary, dfcu Bank and other defendants.
“The claim has been brought by certain shareholders of Crane Bank Limited (CBL) and in the name of CBL which is in Liquidation as per the Bank of Uganda notice dated 13th November 13, 2020. The claim relates to the transaction in which dfcu Bank acquired some assets and assumed some liabilities of CBL (then in Receivership) from Bank of Uganda (acting as Receiver of CBL) following the placement of CBL under Receivership in 2017. dfcu intends to defend the claim vigorously. We are unable to comment further on ongoing legal proceedings,” the notice read in part.
In January 2017, dfcu Bank took over Crane Bank, which had been under the statutory management of the Bank of Uganda because Crane’s liabilities exceeded its assets. The acquisition included all customer deposit accounts and some loan accounts.
As of 2016, White Sapphire had a 47.33% stake in Crane Bank, a company incorporated in Mauritius. The rest of the shareholding (48.7%) was being controlled by Sudhir Ruperelia and his family.
Last week, the Supreme Court dismissed an application in which the Bank of Uganda sought permission to amend the memorandum and record of appeal before hearing the appeal.
Bank of Uganda wanted to substitute Crane Bank Limited (in receivership) with Crane Bank Limited (in liquidation), saying under the law, the two entities can never be the same and can never enjoy the same status.
Adapted from The NewVision
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