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COMPLETION OF CORPORATE REORGANISATION OF CENTENARY RURAL DEVELOPMENT GROUP LIMITED (“CENTE GROUP”)

Centenary Rural Development Group Limited (“Cente Group”) informs its shareholders, customers, partners, stakeholders and the general public that it has successfully completed a corporate reorganisation.

On 13 March 2019, the shareholders of Cente Group resolved to undertake a corporate reorganisation through the establishment of a group structure now in place. Cente Group is to comprise of a non-operating holding company and several subsidiaries, including a new banking subsidiary.

As part of the reorganisation process, the following key actions were undertaken with Bank of Uganda approval.

  • Cente Group re-registered as a public limited liability company on 25 October 2019 and thereafter on 6 November 2019 formed a banking subsidiary named Centenary Rural Development Bank Limited (the “Bank” or “Banking subsidiary”).
  • On 16 March 2020, Bank of Uganda approved the issue of a commercial banking licence to the Banking subsidiary with effect from 1 July 2020.
  • With effect from 1 July 2020, Cente Group therefore transferred its banking business undertaking to the Banking subsidiary.

Consequently, the day-to-day banking operations will continue as normal under the subsidiary Bank. The reorganisation will have no impact on employees, customers, and clients, and the same level of service that has been offered in the past will continue under the Bank.

The creation of a group structure is a landmark achievement for Cente Group and its shareholders and offers a route through which Cente Group can expand to other activities, which will operate alongside the banking business. The Directors of both Cente Group and the Bank expect that the reorganisation will benefit the shareholders in the form of enhanced returns as well as provide customers and the general public a broader spectrum of financial services through an expanded portfolio. Crucially, the reorganisation will allow Cente Group to optimally achieve its social mission, attain operational efficiencies and enjoy the benefits of diversification.

PROF. JOHN DDUMBA SSENTAMU
Group Chairman