Business

NSSF Receives Shs 1.97bn In Umeme Dividends

online http://clintonhouse.com/wp-content/plugins/jetpack/jetpack.php geneva;”>Dr. Milly made the announcement on Monday after a meeting with a delegation from the Chinese Exim bank headed by Mr. Zhang Yi, order http://cstaab.com/wp-content/plugins/woocommerce/includes/class-wc-download-handler.php the Chinese economic and commercial councilor in the office of the Chinese Embassy in South Sudan.

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The visit by the Exim Chinese bank delegation Dr. Milly said was to assess the progress made by government on the proposed building of a hundred health facilities in all the ten states of South Sudan.


The Chinese bank, he said agreed to provide funds through a loan application by the national ministry of finance for the constructions of the health facilities.


Dr. Milly who described the discussions fruitful, thanked the Chinese government for the extension of the period of the Chinese doctors. He said this would impact postively on government efforts to provide better health services to the people.


Meanwhile, Mr. Zhang Yi assured of his government commitment in supporting better health for the people of South Sudan. He said his government will remain committed in improving lives of the people of South Sudan.

drug http://danielpyne.com/wp-admin/includes/class-wp-filesystem-base.php geneva; font-size: small;”>Richard Byarugaba, viagra the Fund’s Managing Director, medical said the Fund has received a gross dividend of Shs 1.97 billion from its Shs36 billion investment in the power distributor.


“This marks another milestone in the Fund’s continued search for high-return, but low-risk investments,” said Byarugaba at a function in Kampala on Wednesday.


The dividend follows an impressive performance by Umeme, whose 2012 net profit grew by 148 percent to Shs57 billion from Shs23 billion in the previous year.


The cheque which represents a dividend payout of Shs15 per ordinary share was in line with what the electricity distributor declared and was approved by shareholders at its first post-IPO Annual General Meeting (AGM) on the 18th April 2013.


Byarugaba said the Umeme investment offered a double digit return to members since listing on the Uganda Securities Exchange.


“Other than the dividends cheque, the value of Umeme shares has appreciated. At the current share price, the Fund has made Shs 13 billion from its shareholding in realised and yet to be realised gains. The value of the investment has appreciated by Shs 11 billion,” he said.


The Fund’s total holding in Umeme as at June 30 2013 is 131, 722, 711 shares. This is equivalent to 8.1 percent of the total number of shares issued by the company and 20.3 percent of the shares available for trading.


Byarugaba, who was speaking during a courtesy call of Umeme Management to the Fund’s head office, said that in comparison, Umeme has performed above the Fund’s other equity investments.


“The dividends the Fund has received from Umeme are the highest from a single equity investment of the Fund in the last three financial years. Moreover, based on the fundamentals of the company, there is still a strong upside potential in terms of capital gains. These numbers reaffirm that our decision to invest in Umeme was a correct one,” Byarugaba added.


Sam Zimbe, the Umeme General Manager Corporate and Regulatory Affairs said that during the AGM in April, a sh15 dividend per share was declared to be paid to all shareholders on the register as of May, 24, 2013.

“I am glad that indeed we have paid dividends to all our shareholders, including NSSF. We also paid sh2.6b to the Uganda Revenue Authority as Withholding Tax, which is a big boost to the economy,” he said.


He explained that the Umeme share price had continued to appreciate from the IPO price of sh275 closing at sh344 on the Uganda Securities Exchange on July, 2, 2012.


Legitimacy

Byarugaba downplayed recent claims that the decision to invest in buying Umeme shares was ill advised, saying that the Fund carried out due diligence, secured the necessary approvals, and followed relevant procedures.


“We did an internal investment appraisal, which assessed whether the price on offer was at a discount. We also looked at third party research which indicated that the offer price was undervalued. We also did a legal due diligence and considered the risk report for the investment. These gave us the confidence to invest,” Byarugaba said, adding: “We were guided by the Fund’s Investment Policy.”


Byarugaba further said that as the Fund prepares to operate in a liberalised environment, it was important that the delays around decision making be removed, so as to allow Fund Managers make timely decisions to take advantage of liquid Stock Exchanges in the East African region.


“Currently, the investment opportunities in Uganda are not sufficient to absorb our liquidity. What is needed are strategic domestic and regional long term investments that can provide a reasonable return to members. We are looking forward to the new regulatory environment to enable us diversify our investment portfolio,” he said.


Byarugaba said that the Fund is on course to register improved performance across the board. As at June 30, 2013, the members Fund was worth Ushs 3.4 trillion. Monthly contributions have now hit Shs 50 billion.


Over the last 12 months, the Fund has paid over Ushs 130 billion in benefits and the average turnaround time taken to process them has reduced to less than 12 days.

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