Sumac Microfinance Bank’s Board has voted out its biggest shareholder, Dubai-based investment firm Badoer Investments.
In a tweet confirming the exit, Badoer’s Director Ricardo Badoer termed the decision as unfair. “I want to make it clear that I am still biggest shareholder (16%) even if I was unfairly voted out from the Board. I have always been passionate about my role as Board member and want the best for Sumac and I am committed to make improvements to Sumac. #Iwillbeback”
Badoer pumped in sh100 million ($1 million) into Sumac, taking up 15.6 per cent stake in the SME lender in July 2018. Almost the same time, he bought a majority stake in Wazito FC and soon afterwards Business Today.
At the time, the deal valued Sumac at sh641 million. It led him to take up a seat on the board of Sumac.
The SME lender said they will use the funds to boost their capital as they look to expand their loan book. They were also looking at opening four more branches. They currently have two branches in Nairobi and one each in Kiambu and Nakuru.
In recent years, Badoer Investments has been on an expansion drive in East Africa. It bought 20 per cent of Tanzania-based Hakika Microfinance in February 2019 and in March this year, bought The ALTX East Africa Exchange, a securities exchange company in Uganda.
It was reported in January this year that the Board and Badoer were at loggerheads.
The microfinance has however yet to comment on the developments.