Umeme to launch IPO in Uganda and Kenya

Umeme, Uganda’s largest power distribution company intends to list shares on the Uganda Securities Exchange and the Nairobi Stock Exchange in the fourth quarter of 2012, subject to approval by capital market regulators.

The initial public offer of a minority of its shares will diversify the ownership of Umeme and enable a reorganization of the company’s capital structure.

Umeme’s Managing Director Mr. Charles Chapman said: “This IPO will make Umeme stronger, more transparent and more accountable with our customers and employees as shareholders.”

Mr. Chapman continued, “The initial public offering will support Umeme’s capital raising initiatives to finance the continued development of the electricity distribution network, including projects such as prepayment metering and energy loss reduction. With the recently agreed regulatory targets and the increased availability of power, we believe the timing is right and that customers and employees should have the opportunity to share in the profits of the business.”

Umeme has appointed an experienced transaction team to support the transaction:

·       Transaction advisor and lead receiving bank: Stanbic Bank of Uganda

·       Sponsoring broker: African Alliance Uganda

·       Reporting accountant: PricewaterhouseCoopers Uganda

·       Legal advisors: Webber Wentzel, Masembe, Makubuya, Adriko, Karugaba & Ssekatawa Advocates (Uganda) and Anjarwalla & Khanna Advocates (Kenya)

·       Share registrar and data processing: Custody And Registrars Services Limited

·       Public relations advisor: Hill+Knowlton Strategies

·       Media advertising & communications: Ogilvy and Mather Moringa

Due to the strict regulations surrounding IPOs, no further details are available at this time; updates will be provided once the necessary approvals have been received.

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About Umeme

Umeme is Uganda’s largest electricity distribution company supplying 99% of Uganda's power. Umeme has substantially developed the network since its establishment in 2005 following the restructuring of the electricity sector by the Government of Uganda. Umeme has increased energy sales from under 1,000GWh to over 1,700GWh and its customer base has grown from 250,000 in 2005 to almost 460,000 by the end of 2011.

Umeme earns a contracted US$ return on capital deployed on network investment, fixed for the life of the concession (2025). The sector is regulated under strict and transparent legislation managed by the Electricity Regulatory Authority whose mandate includes the setting of key performance targets for Umeme measured over a specified period. Targets for the next regulatory period were agreed in 2012.

Umeme is 100% owned by Actis, the pan-emerging markets private equity firm with US$5 billion funds under management.