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.
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.
