Business
NSSF receives sh3b dividends from Umeme
Publish Date: Jul 16, 2014
NSSF receives sh3b dividends from Umeme
  • mail
  • img
newvision

Umeme chief executive officer Charles Chapman has urged the Government to encourage giant corporates operating in Uganda to sell their shares to the public.

Chapman, while handing over a dividend cheque to the National Social Security Fund (NSSF) on Monday, noted that if the telecom firms and banks sell off part of their shares, the Ugandan public can partake in the enormous growth.

“The focus should be on how many more initial public offers (IPO) should be done in the market,” noted Chapman. An IPO allows the public to buy shares of a company listing at a much subsidised flat rate other than the market rate decided by demand and supply.

Banking and the telecommunications sectors are some of the most lucrative in Uganda, with the industries having close to 30 banks and seven telecom operators. All the telecoms are privately owned except Uganda Telecom, where the Government retains a small stake.

“Put pressure on these companies, the returns should be retained in Uganda,” noted Chapman.

Geraldine Ssali, the NSSF acting chief executive, said in buying into Umeme, NSSF followed due process even through towards the closure of the process, both the minister of finance and the fund’s chairman were not in the country.

She was responding to queries from Parliament about the ongoing recruitment process at the NSSF and the procedure through which NSSF bought Umeme shares. NSSF is the third largest institutional investor in the utility company, controlling 14.27% shares.

“Even if we exited, we would walk away with capital gains of about sh19b. I would walk away with more money than I came in with,” noted Ssali.

The fund received a cheque of sh3.3b net earned in about a year.

Ssali said for the fund to be competitive, the NSSF Act should be amended so that the many bureaucratic processes in clearing investments are avoided, just like it is with private firms.

NSSF spent a total of sh70b with the IPO, costing sh25b and the secondary transaction sh11b. The fund also spent sh34b on 100 million Umeme shares as Actis exited Umeme.

RELATED ARTICLES

UMEME lists on Stock Exchange

Umeme IPO wins numerous accolades

USE welcomes Umeme listing

Umeme wins approval to list shares in Kenya

 

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Crest Foam factory re-opens
Government has allowed Crest Foam mattress factory to re-open. The factory was closed on March 9 following a fire that left 6 people dead and property worthy sh6b destroyed....
Major Greek bank to wipe debts of poorest clients
One of Greece's largest banks is to wipe away the debts of clients who owe up to 20,000 euros ($21,600) in a one-off gesture to ease the burden on its crisis-hit customers....
US envoy urges youth to embrace agriculture
THE United States ambassador to Uganda Scott DeLisi has called upon youth to embrace agriculture as a pound-for-pound answer to the biting unemployment in the country...
Polythene bag ban still on, says NEMA
The crackdown on the use of polythene bags commonly known as kaveera is still on, the National Environment Management Authority (NEMA) says....
Accounting guru asks auditors to have courage to expose fraud
A former vice president at WorldCom has asked internal auditors to have the courage to cause corporate change through averting fraud....
Subsidies: the oil and gas cancer
At the 2009 Pittsburgh G-20 summit, the leaders of the 20 largest developed and developing economies agreed to phase out fossil fuel subsidies....
Do you support KCCA'S move to return city communter buses?
Yes
No
Can't Say
follow us
subscribe to our news letter