Trad­ing re­sumes for Uganda util­ity shares

East African Business Week - - SPORTS - BY SAM OKWAKOL

KAMPALA,UGANDA— Umeme Lim­ited re­sumed trad­ing of its share on both the Uganda Se­cu­rity Ex­change (USE) and Nairobi Se­cu­rity Ex­change (NSE) last week.

Umeme had vol­un­tary sus­pended trad­ing of its shares in both mar­kets for a week af­ter Umeme Hold­ing Lim­ited, Ac­tis’ the hold­ing com­pany for Umeme, di­vested the re­main­ing 14.3% shares in the com­pany to in­sti­tu­tional and re­tail in­vestors.

Umeme there­fore sus­pended trad­ing to fa­cil­i­tate the con­clu­sion of the trans­ac­tion with­out dis­rupt­ing the price of the Com­pany’s shares.

“The vol­un­tary sus­pen­sion was con­ducted to con­trol changes on the prices of the com­pany’s shares,” Paul Bwiso, Chief Ex­ec­u­tive Of­fi­cer, USE said in a me­dia brief­ing last week.

The Com­pany re­quested and the Uganda Se­cu­ri­ties Ex­change agreed to sus­pend the trad­ing of the Com­pany’s shares on the Uganda Se­cu­ri­ties Ex­change from 7th Novem­ber 2016 up to 15th Novem­ber 2016.

Bwiso was pleased that the mat­ter that led to the vol­un­tary sus­pen­sion of trad­ing of the com­pany’s shares was sys­tem­at­i­cally and ex­pe­di­tiously re­solved to al­low the com­pany re­sume healthy trad­ing on both stock mar­kets.

“USE will con­tinue to walk with Umeme and sup­port the com­pany to achieve its strate­gic ob­jec­tives,” Bwiso said.

The Man­ag­ing Di­rec­tor Umeme, Se­lestino Babungi said Umeme has built its brand over the years and this has gone a long way to po­si­tion the com­pany as a trusted in­vest­ment part­ner, thereby, at­tract­ing cred­i­ble in­vestors across the re­gion.

“Umeme has con­tin­ued to make good re­turns on in­vest­ment at the stock mar­ket. For ex­am­ple, last fi­nan­cial year, we were able to earn ex­cesses of 43% on re­turns,” Babun- gi said. He as­sured share­hold­ers of con­tinue prof­itabil­ity go­ing for­ward.

Umeme as a power dis­tri­bu­tion Com­pany is one of the few en­ti­ties on the con­ti­nent that has been able to de­velop a business model that at­tracts cap­i­tal in the stock mar­kets, there­fore, many other coun­tries in Africa are learn­ing from its suc­cess with the in­tent to bor­row and ap­ply the same business model in their own coun­tries.

“Dif­fer­ent coun­tries allover Africa such as Ghana, South Africa, Malawi to men­tion but a few, have sent dif­fer­ent teams to Uganda to learn from Umeme’s suc­cess story on the stock mar­ket and want to bor­row the same and ap­ply it in their home coun­tries. Umeme is a tes­ta­ment of the suc­cess story of our lo­cal com­pa­nies,” Richard Byaru­gaba, the NSSF Man­ag­ing Di­rec­tor, said.

He called on other com­pa­nies in Uganda to take a leap and en­list on the coun­tries stock mar­ket to ben­e­fit from the enor­mous op­por­tu­ni­ties at the USE.

Umeme has built its brand over the years and this has gone a long way to po­si­tion the com­pany as a trusted in­vest­ment part­ner

Se­lestino Babungi, The Man­ag­ing Di­rec­tor Umeme

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