In the country’s biggest such offer, Actis, the London-based private equity firm, will sell a 38.3pc stake in Uganda’s electricity distributor to the public. Photos/FILE/TEA Graphic Nation Media Group
The $68.4 million offer will see Actis, the London-based private equity firm sell a 38.3 per cent stake in Umeme to the general public. Actis owns 100 per cent of the electricity distributor.
Umeme’s shares will each go for $0.11 with the offer closing on November 7. Ugandans, Kenyans and Rwandan investors, as well as international investors are expected to take part in the offer.
However, it is still unclear whether Tanzanian’s will be allowed to take part in the offer, since the country restricts its nationals from participating in IPOs because of foreign exchange restrictions.
Umeme plans to use the funds raised from the IPO to reduce its interest-bearing debt and be able to secure better financing options over the next few years, to help finance its capital investment programme.