THE Uganda Securities Exchange Governing Council, the stock market operators, together with the Capital Markets Authority (CMA), the regulators, have approved the listing of 51% shares of the Kinyara Sugar Works Limited (KSWL) on the stock exchange.
Approval came after the Councilâ€™s 49th meeting on Wednesday, while the CMA endorsed the listing on Tuesday.
The CMA boss, Japheth Katto said yesterday, Government would retain 49%. â€œIf Government decides to sell the 49% shares later, there should be a normal process to be followed. But ideally, all the 100% shares will be listed. That is the legal requirement,â€ Katto said.
USEâ€™s Simon Rutega said in a statement yesterday, â€œThe floatation of shares is expected to start in two weeks time, while the listing onto the USE is scheduled in March 2003.â€
Sources however, said the retaining of 49% shares was a stop-gap move. â€œWe had originally planned to list 100% shares. But because of political reasons, certain ministers fronted the Madhvani Group to buy 51% of the stake. But there was disagreement on a core investor. So to avoid the pressure, it was decided that Government retains 49% for another 12 months,â€ said a source.
However Katto told The New Vision. â€œWe basically did our role of looking at the prospectus. Our approval means the prospectus meets all the listing requirements.â€
51% of Kinyara for sale