By Silvia Nyambura
The sale of 45.7 percent of electricity distributor Umeme has been finalized in a 2 part transaction that has seen the company sold off for USD 98 million. The 2nd and final phase involved the sale of 6.7 percent shares worth USD 13 million to Ugandan retail investors and Umeme management and directors. This follows the oversubscribed USD 85 million institutional tranche in the first phase with over 20 institutional investors showing interest in May 2014. The institutional tranche represented 39 percent of the company and with the finalization of the deal Actis remains the second largest shareholder in Umeme, with a 14.3 percent residual shareholding.
Commenting on the deal in a press release sent to the CEO Magazine David Grylls a Partner at Actis said, “We have been delighted by the strong take-up of Umeme shares, first by heavyweight institutional investors and now by retail investors as well as Umeme management and directors. Not only is this indicative of a healthy appetite for solid Ugandan companies, but also a commitment to Uganda’s powerful macroeconomic story, and can only be good for Uganda’s capital markets.