Umeme: We are not on Sale

sickness check geneva; font-size: small; line-height: 200%;”>Speaking to business editors at Kampala Protea Hotel, pills Umeme publicist, Henry Rugambwa said the company had been informed by its majority shareholder Umeme Holdings Limited (UHL) that it is a contemplating a sale of a substantial block of its shares in the Company.

“In view of this fact, and in keeping with their obligations under the Uganda Securities Exchange (USE) Listing Rules, the Directors of Umeme Ltd resolved to voluntarily apply to the Uganda Securities Exchange to suspend trading of the shares until the transaction is concluded and trading in the shares has since been suspended for two weeks,” said Rugambwa.

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

“UHL has assured Umeme that the new potential investors will add considerable financial and reputational credibility to Umeme, the sector and to the economy of Uganda. As a result we believe that Umeme will be a stronger and more creditworthy business.”

Several officials from Umeme today rolled out the company’s growth and achievements over the last nine years, saying the company remains solid, transparent and among the best performers across Africa.


Umeme General Manager, Sam Zzimbe said the company has tremendously reduced power losses to less than 20 percent; rolled out the pre-paid metering systems in different parts of the country; extended power supply to rural areas and contributed to the economy’s growth through payments of billions of shillings in form of taxes to government and creating opportunities to over 2,000 employees.

Rugambwa said in a statement that Umeme is proud of its engagement with investors who are attracted to businesses with high standards of corporate governance and strong management teams in well?run sectors and growing economies.

“Due to corporate governance restrictions, Umeme cannot comment further until the transaction has been completed.”

Umeme, which is listed on both the Kenyan and Ugandan stock exchanges, has since recommended a final dividend of Ushs16.8 per share, to be approved by shareholders at the next Annual General Meeting.

The company this year announced a rise in pre?tax profits of 89 percent, to Ushs115.2 billion shillings ($45 million), and 12.3 percent in revenue to Ushs966 billion shillings.

Rugambwa said since 2005, Umeme has invested over US$224m in modernising its distribution systems, improved the networks performance, introduced education programmes on electricity and connected more than 50,000 new customers each year.

“Umeme’s growth is indicative of Uganda’s powerful macroeconomic story which is why credible investors are looking for an opportunity like this to invest in the value shareholders will deepen the capital pool which can only be good news for the energy sector and people of Uganda.”

Last year Umeme secured a US$190m loan facility from The International Finance Corporation (IFC), Standard Chartered Bank (SCB) and Stanbic Bank to support the Company’s five?year US$440m capital investment programme.

The facility will be utilised to strengthen the network in preparation for new generation from Karuma, Isimba and others planned by Government; bring down energy losses, finance the national prepayment meters rollout and, safety improvements and enhancements.

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