Money Markets

Investec becomes second largest owner of Umeme

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Umeme Holdings has offered 43,945,000 shares for sale at Uganda Securities Exchange under special transaction rules. Photo/FILE

Umeme Holdings has offered 43,945,000 shares for sale at Uganda Securities Exchange under special transaction rules. Photo/FILE  

By GEOFFREY IRUNGU

Posted  Thursday, May 22   2014 at  19:41

Actis has managed to sell two-thirds of its stake in Uganda-based power firm Umeme Limited and is now left with just 21.03 per cent as Investec becomes the second largest owner.

In a statement by the Nairobi Securities Exchange, Umeme Holdings — a subsidiary of British-owned Actis Infrastructure 2LP — said the second single largest shareholder would be London and Johannesburg-listed Investec Asset Management with 18.47 per cent having bought 300 million shares.

Previously, Investec did not own any shareholding in the company.

“Umeme Holdings Limited retained 21.03 per cent of the shares in the company following the transaction and has agreed with the Government of Uganda that it will retain a significant proportion of this shareholding for a period of at least two years,” said the firm in a statement.

Actis also announced that it was already in the process of selling more shares with a view to reducing its stake to 18.32 per cent. It is offering 43,945,000 shares and the sale closes Friday next week.

“Umeme Holdings Limited will also be making a further partial sale of 43,945,000 shares, on the USE (Uganda Securities Exchange) to retail investors. The sale will…be conducted on the special lots board of the USE under special rules for the transaction,” said the company.

Uganda’s National Social Security Fund also raised its stake from 8.11 per cent to 14.27 per cent — indicating that the organisation had bought 100 million shares in the deal.

Farallon Capital raised its stake from 4.89 to 7.82 per cent while Coronation Funds increased its investment in the power firm to 3.68 from 0.40 per cent.

Allan Gray Africa Funds bought more shares to hold 3.25 per cent compared to the previous 3.01 per cent. Utilico Emerging Markets Limited now has 2.48 per cent stake compared to the previous 2.06 per cent.

Everest Capital which held 0.73 per cent stake before the Actis sale now has 1.47 per cent shareholding.

Other investors, put together, hold 23.75 per cent stake, up from 17.31 per cent, showing that they bought 104.64 million shares. The International Finance Corporation did not change its 2.78 per cent shareholding.