Banking & Financial ServicesEast AfricaThe Big Story

What does the UGX700 billion buyout mean for Umeme shareholders?  

A photo collage of Selestino Babungi and State Minister for Finance, Mr Henry Musasizi, who presented ast week tabled a proposal that sought Parliament’s approval to borrow $190.9m (about UGX702.7 billion) through a syndicated arrangement with Stanbic Bank Uganda.

Now that we know we have an idea of the Umeme buyout amount, what could be in it for shareholders?  Umeme has since last year been one of the most active counters at the Uganda Securities Exchange, with analysts citing the expected buyout windfall as the biggest push factor for the activity.  In April last year, the stock posted a gain of 9% to UGX 439.75, a growth that had last been witnessed in June 2023.  But it slightly declined and by last week, it was range bound at UGX415 ($0.11), with a projected increase ahead of the expiry of…

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About the Author

Paul Murungi is a Ugandan Business Journalist with extensive financial journalism training from institutions in South Africa, London (UK), Ghana, Tanzania, and Uganda. His coverage focuses on groundbreaking stories across the East African region with a focus on ICT, Energy, Oil and Gas, Mining, Companies, Capital and Financial markets, and the General Economy.

His body of work has contributed to policy change in private and public companies.

Paul has so far won five continental awards at the Sanlam Group Awards for Excellence in Financial Journalism in Johannesburg, South Africa, and several Uganda national journalism awards for his articles on business and technology at the ACME Awards.

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