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Dutch private equity fund acquires 50.4% controlling stake in Nakasero Hospital

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Hospital Holdings Investment B.V (HHI) a special purpose vehicle set up by Investment Fund for Health in Africa II (IFHA II) has acquired 50.4% of Nakasero Hospital, CEO East Africa Magazine can confirm.

“Yes it is true. We found we needed to improve on our current service and expand to provide some other services which we currently do not have and are needed. The shareholders of Nakasero hospital sat and agreed to look for an investor to come in with equity. That is how in our search we ended up with HHI,” Dr Ben Mbonye, the Chairman Nakasero Hospital confirmed to this reporter via Whatsapp.

He however declined to divulge other details of the deal.

Doctors perform an operation at Nakasero Hospital

However, according to our own sources, although details of the price are not yet clear, HHI is said to have acquired 1,787 shares of the total registered 3,541 shares from a number of the Hospital’s majority and minority shareholders.

Mercantile Global, a company owned by a 5 Indian businessmen living in Uganda and Nairobi, that include a Jaspal Phaguda, a the owner of Ezzi Stores that was previously the largest shareholder with 3,059 shares (86.4%) sold the biggest chunk- out of the that shed off 1,588 shares (44.8%), remaining with 1,471 shares (41.5%).

Montana Capital who held 100 shares, according to our sources reduced their stake to 67 shares while a Dr Robert Busingye, who previously owned 125 shares, sold of 75 shares remaining with 50. seventeen other minority shareholders each with shares ranging from 1 share to 50 shares either sold wholly, partially or did not sell.

Nakasero Hospital was started in 2009, by a team of Consultant Doctors with a common goal of setting up a world class hospital that would meet the healthcare needs of Ugandans and East Africans.

According to the hospital’s financials, the hospital has witnessed a steady 73% growth in revenue, from UGX15.5 billion in 2014 to UGX26.7 billion in 2017. As a result, the hospital recovered from a loss of UGX1.5 billion in 2014, making its first profit of UGX2.1 billion in 2016. In 2017, there was a 136% increase in profits to UGX5 billion. 

Who is Hospital Holdings Investment B.V?

Hospital Holdings Investment B.V (HHI) is a special purpose vehicle set up by the Investment Fund for Health in Africa II (IFHA II). IFHA are private equity funds dedicated to small to medium size (equity) investments in private healthcare companies in Africa.

Nakasero Hospital is one of the largest and well-equipped private hospitals in Uganda

The private equity fund describes itself as investing in “private healthcare companies that operate in fast-growing markets and show unique advantages over the competition.”

IFHA predominantly focuses on companies active in care provisioning (hospitals, clinics and similar care providers), Health insurance, healthcare products manufacturing, wholesale and distribution of healthcare products. It also invests in health related/supporting industries, including education, ICT services, the management and administration of care facilities, as well as buildings, equipment and medical supplies.

According to their website, IFHA has 12 portfolio investments and €170 million (UGX708 billion) assets under management that include 40 clinics and 3 private hospitals.

Some of these portfolios include: AAR Holdings Limited (AAR)- the largest private healthcare insurance company in East Africa and AAR Health Care Holdings Limited, a leading medical service provider with health centers in East Africa and hospital operation in Kampala.

IFHA has also invested in CIEL Healthcare Limited (CHL) a wholly owned subsidiary of CIEL Limited, itself one of the leading industrial and investment groups in Mauritius with operations in numerous African and Asian countries.

CHL in June 2015 acquired a controlling stake in Dr Ian Clarke’s International Medical Group (IMG) that comprised of International Medical Centre (IMC)- a network of outpatient clinics throughout Uganda, International Hospital Kampala (Uganda’s largest private hospital), and IAA Healthcare, which provides medical insurance. IMG also includes International Medical Foundation (IMF), a charitable foundation, IMG Pharmaceuticals and the International Diagnostic Centre (IDC) which provides quality diagnostic services and wellness checks.

IFHA is funded by a mix of18 investors who include: The Netherlands Development Finance Company (FMO), Pfizer Inc, African Health Systems Management Company, International Finance Corporation (IFC), African Development Bank, European Investment Bank, Dutch Good Growth Fund, Achmea Pensioen- en Levensverzekeringen and Swiss Investment Fund for Emerging Markets.

Others include: Stichting Pensioenfonds ABP, the pension fund for government and education employees in the Netherlands and Stichting Social Investor Foundation for Africa (SIFA). Contributors to SIFA include: Achmea Holding N.V. is one of the largest suppliers of financial services in the Netherlands, ACHMEA, Aegon N.V- a multinational life insurance, pensions and asset management company headquartered in The Hague, SNS REAAL– a Dutch financial institution in insurance and banking which focuses on the private market and small to medium businesses as well as Heineken, Shell, and Unilever

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Finance

Kwame Ejalu’s Kent Holdings, acquires Alexander Forbes’ Ugandan unit; rebrands to Zamara

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Zamara Group’s logo; now the new face of Alexander Forbes Uganda, who have rebranded into Zamara Uganda

Alexander Forbes Financial Services Uganda Limited is now Zamara Actuaries, Administrators and Consultants (U) Limited.

This follows the ongoing exit of the South African financial services group from Uganda and the sale of their 51% stake in Uganda to Kent Holdings Limited- a Ugandan financial services group with interests in insurance brokerage and pensions management.

The two companies affirmed the sale, in a joint statement on August 21st, by Bonga Mokoena the Alexander Forbes Emerging Markets (AFEM) Chief Executive Officer and Kwame Ejalu, the Kent Holdings Limited Chairman.

Kwame Ejalu, the Kent Holdings Limited Chairman wields a rich experience in Uganda’s financial services industry. The Kent/Zamara partnership blends Kent Holdings’ 22 years of local experience and strategic leadership with Zamara’s 23-year African heritage and technical capacity

“Alexander Forbes Emerging Markets (AFEM) and Kent Holdings are pleased to announce that an agreement has been reached on a sale of shares to Kent Holdings Limited. On 2 July 2019, a sale of shares agreement was executed in terms of which, AFEM sold 51% in Alexander Forbes Financial Services Uganda Limited, to Kent Holdings Limited, a co-shareholder in Alexander Forbes Financial Services Uganda Limited,” read the statement.

Kent Holdings, previously owned 49% of the Ugandan operations.  

The statement however said that “the sale of shares agreement is subject to fulfilment of conditions precedent.”

“The terms and conditions of the sale agreement remain confidential,” both executives announced, but confirmed that Alexander Forbes has effected a name change and will now be known as Zamara Actuaries Administrators and Consultants (Uganda) Limited.

The name change was gazetted on 17th July 2019.

“Alexander Forbes Financial Services (Uganda) Limited, has been by a special resolution passed on 10th July 2019 and with the approval of the registrar of companies changed its name to Zamara Actuaries Administrators and Consultants Limited- 17th July 2019,” reads General Notice No. 762 of 2019, extracted from the Gazette.

Miriam Ekirapa Musaali, the Zamara Uganda Chief Operating Officer. She possesses over 11 years in Uganda’s capital markets industry- where she rose to the Director Market Supervision role at Uganda’s capital markets regulator – Capital Markets Authority, from whence she became the Alexander Forbes Uganda (Now Zamara Uganda) COO and Head of Business for slightly for slightly over 2 years. She says, the name change shall not in any way impede the quality of service as the team remains the same “enthusiastic, energetic, creative” team.

In a separate announcement, media announcement run in the local dailies, Zamara also confirmed their entry into the Ugandan market, promising that they called “fresh perspective in the delivery of financial services in Africa.”

Who is Zamara?

According to their media announcement, the Zamara Group is a specialised financial services group providing actuarial advice and retirement administration solutions in financial services, umbrella retirement solutions, investment and risk sectors to individuals, corporates, parastatals and retirement fund clients. 

The firm currently administers assets in excess of KSh. 280 billion an equivalent of UGX 9.995 trillion and is the only actuarial, consulting, accounting and pension administration firm in Kenya to be ISO 9001:2015 certified.

Zamara Group Executive Director , James Olubayi

Uganda is the sixth Zamara operation after Kenya, Nigeria, Rwanda, Tanzania and Malawi. Zamara started operations in Kenya over 23 years ago as Hymans Robertson and later changed to Alexander Forbes (East Africa) Limited before renaming to Zamara Actuaries, Administrators and Consultants Limited, following the exit of Alexander Forbes from the Kenyan market in 2017.

For four consecutive years, Zamara, their umbrella fund, the Zamara Fanaka Retirement Fund (formerly Alexander Forbes Retirement Fund) and Zamara Vuna Pension Plan (formerly Alexander Forbes Vuna Pension Plan), Zamara’s individual pension plan have been variously awarded in Kenya’s Think Business Awards.  

A brand that embodies a fresh perspective on the delivery of financial services

Commenting on the entry of Zamara into Uganda, Kwame Ejalu, the Kent Holdings Chairman said: “We are enthusiastic about this partnership between Kent Holdings and Zamara Group as it marks the entry into Uganda, of a formidable brand that embodies a fresh perspective on the delivery of financial services in Africa. This partnership blends Kent Holdings’ 22 years of local experience and strategic leadership with Zamara’s 23-year African heritage and technical capacity, to deliver innovative and excellent services to our clients, underpinned by simplicity, empathy and trust,” adding: “Zamara Uganda will now add to our portfolio pan-African expertise, actuarial services and other online solutions that we previously did not offer.”

Asked if Zamara had acquired the stake, previously held by Alexander Forbes, he said he would comment on this after “the Alexander Forbes-Kent Holdings transaction is fully complete and all conditions precedent are fulfilled.”

Ejalu however said that Zamara Uganda inherits and will continue to run a managed private pension funds sector in Uganda and managed assets under administration portfolio in excess of UGX380 billion- roughtly 40% sector market share.

James Olubayi, the Zamara Group Executive Director said that the Zamara Group looked at Uganda as “one of the key strategic regions in the market for growth of the group.”

“Zamara aims to elevate the quality of advice and solutions offered to stakeholders and inevitably be a game changer for clients it serves in Uganda. We look forward to the extended partnership with Kent Holdings, clients, stakeholders across Africa,” he said.

Miriam Ekirapa Musaali, Chief Operating Officer, Zamara Uganda who previously was the Alexander Forbes COO said “We remain the same enthusiastic, energetic, creative team that is committed to serving our clients in Uganda. We will no doubt continue to offer superior consulting, advisory and administration services to pension funds in Uganda and further enhance our offering and advice to truly world class levels.”  

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Finance

Stanbic Bank scoops June/July best gov’t securities dealer award

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The Governor Prof. Emmanuel Tumusiime-Mutebile has given an award to Stanbic Bank Uganda (LTD) for being the best performing bank in dealing government securities for the months of June and July 2019. The award was received by Stanbic Bank CEO Mr. Patrick Mweheire during the quarterly Uganda Bankers Association (UBA) meeting at BoU headquarters in Kampala.

Governor BOU Prof. Emmanuel Mutebile(L) and Patrick Mweheire(R), CEO Stanbic Bank Uganda(LTD) at the do

The bank has been recognised by the regulator for its role in the primary dealer system that helps in developing Financial Markets and in reducing the costs associated with issuing Government Securities; through increasing demand, market efficiency, encouraging secondary market trading and improving the quality of Financial Market information.

A primary dealer is a pre-approved bank, broker or financial institution that is able to lend money to the government through treasury bonds and treasury bills. 

Background information on best performing banks in government securities award

In January 2005, the Bank of Uganda initiated the “Award for the Best Performing Primary Dealer in Uganda Government Securities for the Month” to recognize the Primary Dealer that performed best in trading Uganda Government Securities and transmitting information regarding the status of the financial markets to the Central Bank.

A Primary Dealer is any financial intermediary that has signed a Memorandum of Understanding with the Bank of Uganda to execute the following actions on a consistent basis:

§ To participate as counter-party in Uganda Government securities auctions conducted by the Bank of Uganda.
§ To provide the public with prices or yields that they will buy and sell “On-the Run” (the most recently auctioned) Uganda Government securities. i.e. Treasury bills and Treasury bonds on a continuous basis.
§ To provide the public with prices or yields that they will buy Off-the-Run (Other than the most recently auctioned) Uganda Government securities on a continuous basis.
§ To trade with the public Uganda Government securities at the prices or yields that they have quoted.
§ To make available information on the status of the market to the Bank of Uganda on a timely basis.

The points allocated for the Award to the Best Performing Primary Dealer in Uganda Government Securities for the Month are aggregated to determine the winner of the prestigious award.

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Travel

Unscrupulous Tour Operator Arrested

Tourism police have arrested a rogue tour operator accused of fleecing tourists of $21,500. The suspect has been identified as Richard Tusasibwe, director of Gatatu Safaris Limited in Kigezi.   According to CP Frank Mwesigwa, Tusasibwe, he was arrested at Arcadia Cottages in Kabale; near Lake Bunyonyi; where he had taken other tourists for a […]

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Tourism police in Kabale have arrested a rogue tour operator accused of fleecing tourists of $21,500. The suspect has been identified as Richard Tusasibwe, the director of Gatatu Safaris Limited in Kigezi.  

According to CP Frank Mwesigwa, Tusasibwe, was arrested at Arcadia Cottages in Kabale; near Lake Bunyonyi; where he had taken other tourists for a trip.

He added that the arrest came after a tip off by suspecting people who had fallen victims of his unscrupulous behavior and the covert teams at check-in were able to arrest him. He is currently being held at Kabale Police station and charged with obtaining money by false pretense.

Richard Tusasibwe(centre) in handcuffs

Tusasibwe is alleged to have been contracted by 5 American tourists to organize chimpanzee and gorilla tracking expedition in Uganda. After an airport pickup and arrival in Kisoro, Tusasibwe abandoned the tourists at a lodge and has been on the run for the past two weeks.

Uganda Tourism Board Quality Assurance Manager, Samora Semakula said that the board was working around the clock to ensure that quality standards and the law are upheld in the tourism sector and that rogue operators face the law.

“We are pleased that the police has arrested a rogue operator who has been on the run for the last two weeks since this case was brought to our attention. Rogue tour operators are a peril to the growth and development of the sector. Uganda Tourism Board will continue to work with the tourism police and other players in the sector to ensure that the vice is brought to a conclusive end,” Semakula said.

Mwesigwa reassures tourists saying, “As tourism police, we are committed to clean up quack tour operators who con our tourists. Uganda remains a peaceful and secure country and all efforts together with stakeholders is to ensure that law and order is upheld in the tourism sector and the country at large.”

As mandated by the Tourism Act (2008) Uganda Tourism Board earlier this year kicked of a registration and licensing exercise of all tour operators and facilities in the tourism value chain. This process is aimed to effectively regulate the tourism sector and promote quality assurance across the value chain.

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