Umeme suspends trading of shares

Electricity Company, Umeme has suspended trading on its counter due to an imminent sale of a significant number of its shares on the Uganda Securities Exchange (USE); the voluntary suspension starts on 7th November and will last for a week till 15th November 2016.

"Umeme Holdings Limited is currently contemplating a sale of its shares in the company. If successfully concluded, the transaction may have an effect on the price of the company's shares," a statement signed by Paul Bwiso, the USE CEO read.

In 2014, major Umeme shareholder, Actis, the pan-emerging markets private equity firm, finalized a two-part transaction that saw the company sell a total stake of 45.7% of the Ugandan Electricity Distribution Company.

Actis sold its shares to more than 20 institutional investors in a heavily oversubscribed secondary offer on the Uganda Securities Exchange (USE) and the Nairobi Stock Exchange (NSE).

The National Social Security Fund (NSSF) and South Africa's Investec Asset Management are the first and the largest shareholders in Umeme, with Actis still holding a 14.3% stake as Umeme Holdings Limited.

Actis said in a statement that it planned to hold its remaining minority stake in Umeme for at least two years. And it has come good on its promise to sell its entire stake by 2016.

Umeme's shares were trading at sh525 per share at the close of business on Friday.