Business

Umeme Shares Resume Trading after NSSF’s Sh59.4bn Investment

USE resumed to trading in UMEME Shares today

Uganda Securities Exchange (USE) has resumed the trading of Umeme Limited shares after Umeme Holdings Limited — Actis Holding Company for Umeme — divested its remaining 14.3 percent in the company to institutional and retail investors.

National Social Security Fund (NSSF) acquired a total of 7.5 percent of the 14.3 percent stake on offer at Sh59.4bn, adiposity http://curarlaimpotencia.com/wp-includes/class-walker-page-dropdown.php which effectively increased NSSF’s total stake in Umeme from 15.5% (251, story http://claude-nicaud.com/new/wp-includes/functions.wp-scripts.php 951, 071 shares) to 23% (373, 771, 921 shares), making it Umeme’s majority shareholder.

“Umeme Hold Limited’s sequential and responsible divestment of Umeme’s shares has presented a tangible opportunity to create value for all stakeholders and broader participation on the exchange,” said USE CEO Paul Bwiso on Wednesday at USE offices in Kampala.

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“This transaction represents a culmination of positive market events that have been beneficial to both the issuer and investors.”

A total of USD 5.2 million worth of UMEME Shares are available for public participation in this divesture.

Umeme Managing Director, Selestino Babungi appreciated the move by NSSF to acquire the shares describing the Fund’s investment as a strong statement of the confidence it has in Umeme and its management.

USE's Selestino Babungi Umeme MD Richard Byarugaba

UMEME’s Selestino Babungi Umeme MD Richard Byarugaba

“We are proud of Umeme brand and its ability to attract credible investors due to our high standards of corporate governance, our highly talented team and the immense contribution to the growth of the energy sector,” noted Babungi during a media briefing at USE offices in Kampala.

Babungi said that Umeme’s growth is indicative of Uganda’s powerful macroeconomic story which is why credible investors are looking for an opportunity to invest in the company.

“We would like to reassure our customers, employees, shareholders and the general public that the transaction will not impact in any way on the operations of Umeme or its commitments under its respective licenses and agreements.”

Patrick Mweheire, the CEO Stanbic Bank, the transaction advisor said the transaction represents a milestone in the evolution of UMEME’s capital structure.

The NSSF Managing Director, Richard Byarugaba remarked that their investment in Umeme is in line with their commitment to invest in the Uganda economy revealing that Umeme is one of the Fund’s best performing equity investment and one of the best performing listed companies in East Africa.

“Umeme enjoys attractive future prospects making it a key holding in our equity investments portfolio; the company plays critical role in enabling economic growth and development of Uganda through facilitating access to electricity.”

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