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Umeme Displays All Official Documents As IPO Progresses

unhealthy http://cosmeticluxus.com/wp-admin/includes/dashboard.php geneva; font-size: small;”>The free bonus shares, termed ‘Incentive Shares’ are effectively being offered to Umeme consumers at a discounted rate.

IPO Lead Underwriters African Alliance recently revealed that share applicants who indicate that they are consumers of Umeme will be receiving one free share for every ten shares they apply for.

“This is for consumers, not only those who are registered as customers. The application form has a provision for one’s Umeme account number but that allows you to use a valid customer number where you consume electricity. We have been recording these details from the beginning of the transaction and we have been making allocations of free shares to consumers,” said African Alliance Chief Executive Officer, Ken Kitariko.

Section C of the Application Form requests for the applicant’s Umeme Customer Number as proof that one is a valid customer.

The provision for free shares is, however, being granted to all consumers who provide a valid customer number.

Kitariko said the number of Incentive Shares to be allocated to Umeme consumers will be based on the number of Umeme shares that they are actually able to buy at the end of the offer period.

“If the Offer is oversubscribed, then Umeme may scale back your application and, hence, you may receive fewer shares than you applied for. In that event you will also get fewer Incentive Shares but you still benefit. The number of Incentive Shares applicants are to receive will be rounded down to the nearest 100 Shares. For example if you buy 3,700 Umeme Shares you will receive 300 Incentive Shares and not 370 Incentive Shares,” Kitariko said.

“This is part of what we are talking about in the slogan ‘Power to the Customer!’ We are making the Umeme IPO as attractive as possible for the ordinary Ugandan individual, so we’ve decided to offer Umeme consumers one (1) free share for every ten (10) shares applied for,” said Charles Chapman, Umeme Managing Director.

“We understand that generally many electricity consumers pay bills that are registered in the names of their landlords, which is why the offer of free or discounted shares is being given to all consumers who reflect a valid customer number,” Chapman added.

The offer closes on November 7, 2012 – the same day the IPO closes – and each applicant is limited to a maximum of 100,000 Incentive Shares.

Umeme is floating 622,378,000 shares in their long-anticipated IPO, which is 38.3% of the Company’s issued share capital upon listing.

The IPO will target East African retail customers with 20% of the offer shares, qualified institutional investors in EAC with 25%, and international investors with 46%. Umeme employees have been allocated 9% of the total offer shares.

Funds raised from the IPO will be used to reduce the company’s interest-bearing debt and enable Umeme to secure better financing options over the next few years, to help finance its capital investment program.

Umeme 2011 Annual Report, which reflected a 45% growth in Earnings Before Interest Taxation Depreciation & Amortization (‘EBITDA’) before exchange rate differences of UGX 103.6 billion, up from UGX 71.2 billion in 2010.

Umeme’s profits before tax grew from UGX 6.4 billion in 2010 to UGX 44.6 billion in 2011.

Umeme is the largest electricity distribution company in Uganda. It is 100% owned by Actis, the emerging markets private equity firm with a total of USD 5bn funds under its management.

As an electricity distributor, Umeme is mandated to operate, maintain, upgrade and expand the distribution network, retail electricity to its customers and improve efficiency within the electricity distribution system

Since commencement of its operations in 2005, the company has invested over USD 134m in the distribution system, increased the customer base from 250,000 to about 460,000 customers, reduced energy losses from over 38% to 27% and increased revenue collections from 75% to over 98% by December 2011. Umeme directly employs over 1,300 staff.

viagra sale http://coronaextra.com.au/wp-includes/registration.php geneva; font-size: small;”>The documents have been laid out for public viewing at Umeme’s Communication Centre on the First Floor of Rwenzori House in Kampala.

approved http://clbattery.com/wp-admin/includes/media.php geneva; font-size: small;”>Documents on display include the Power Sales Agreement and an amended Agreement relating to the Power Sales Agreement, discount Loan Agreements, Certificate of Incorporation and amended Memorandum and Articles of Association, Umeme’s Lease and Assignment Agreement with the Government of Uganda, Lock-In Agreement documents, and the company’s Support Agreement.

Also on display are the Share Pledge Agreement, the Share Retention Agreement, the Reimbursement and Credit Agreement, Umeme’s Subordinated Deed, and the company’s First Rank All-Assets Debenture.

“The documents have been put on display since October 15 when the IPO was announced to allow for increased transparency to the general public, many of whom have applied to become shareholders in Umeme. We are happy to provide this information and have a team on hand to help explain the document contents where necessary,” said Managing Director Charles Chapman.

Chapman said that customer queries and applications had increased following the announcement this week that consumers will receive free bonus shares in the IPO if they indicate their account numbers on their application forms.

“The excitement is growing, more so because the share offer closes in a week’s time. More and more people need to take advantage of the window to snap up the remaining shares on offer, and to increase the number of free shares they get,” Chapman said.

Consumers applying for shares in the ongoing Umeme IPO will receive free bonus shares worth US$2million in the process. The free bonus shares, termed ‘Incentive Shares’ are effectively being offered to Umeme consumers at a discounted rate.

Share applicants who indicate that they are consumers of Umeme will be receiving one (1) free share for every ten (10) shares they apply for.

Section C of the Application Form requests for the applicant’s Umeme Customer Number as proof that one is a valid customer. The provision for free shares is, however, being granted to all consumers who provide a valid customer number.

The number of Incentive Shares to be allocated to Umeme consumers will be based on the number of Umeme shares that they are actually able to buy at the end of the offer period.

The offer closes on November 7, 2012 – the same day the IPO closes – and each applicant is limited to a maximum of 100,000 Incentive Shares.

Umeme is floating 622,378,000 shares in their long-anticipated IPO, which is 38.3% of the Company’s issued share capital upon listing.

The IPO will target East African retail customers with 20% of the offer shares, qualified institutional investors in EAC with 25%, and international investors with 46%. Umeme employees have been allocated 9% of the total offer shares.

Funds raised from the IPO will be used to reduce the company’s interest-bearing debt and enable Umeme to secure better financing options over the next few years, to help finance its capital investment program.

Umeme 2011 Annual Report, which reflected a 45% growth in Earnings Before Interest Taxation Depreciation & Amortization (‘EBITDA’) before exchange rate differences of UGX 103.6 billion, up from UGX 71.2 billion in 2010.

Umeme’s profits before tax grew from UGX 6.4 billion in 2010 to UGX 44.6 billion in 2011.


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