October 13, 2016

Bank Of Uganda Speaks Out On ‘Crane Bank Sale’ Rumors

Bank Of Uganda Speaks Out On ‘Crane Bank Sale’ Rumors


By Alex Masereka

Uganda’s Central Bank, Bank of Uganda (BoU) has released a statement explaining its position on the rumors surrounding the sale of Crane Bank.

In the statement released on Thursday and signed by the bank’s Director of Communications, BoU says it does not comment on negotiations to sale shares in a bank when those discussions are still ongoing.

“Bank of Uganda (BOU) has received several enquiries from the public on Crane Bank following reports that they are seeking strategic investors. The shareholders of commercial banks have the option of selling shares to new investors as they deem appropriate. However, any new investor in a commercial bank must satisfy the regulator that they are fit and proper. The BOU does not comment on any negotiations to sell shares in a bank while these negotiations are ongoing,” Christine Alupo’s statement reads.

It adds, “Nonetheless, the BOU monitors closely all commercial banks in Uganda and any actions which it takes are motivated primarily by the objective of protecting the best interests of banks’ depositors.”

Last month, BoU revealed that it had not yet received any official communication from Crane Bank regarding the sale of shares.

Sudhir
Sudhir

 

Tycoon Sudhir Ruparelia who also doubles as the Vice Chairman, Crane Bank Ltd, said in September that they were discussing with a strategic investor who would acquire a stake in the bank.

Sudhir has a controlling interest (in terms of voting) of 48.67 percent in the bank by virtue of shares held directly and by close members of his family.

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