Umeme Limited has resumed trading of its shares on both the Uganda Security Exchange (USE) and Nairobi Security Exchange (NSE).
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 along 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,” Babungi 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.