Kinyara offering by Xmas
Nov 17, 2002
THE final steps towards privatising Kinyara Sugar Works Limited (KSWL), begin next month in December, the Director of the Privatisation Unit (PU) Michael Opagi disclosed over the weekend
By James Odong
THE final steps towards privatising Kinyara Sugar Works Limited (KSWL), begin next month in December, the Director of the Privatisation Unit (PU) Michael Opagi disclosed over the weekend.
“We have already submitted our documentation to the Capital Markets Authority (CMA) for consideration and listing on the stock exchange and as soon as this is done we shall open the offers by December this year,†Opagi said.
Opagi told the Parliamentary Committee on tourism, trade and industry which visited the factory on Saturday under the chairmanship of Nwoya MP, Zachary Olum, that Kinyara had a total of 38 million shares, at least 10% of which would be offered to sugarcane out-growers and factory employees.
Opagi said after privatisation, the number of out growers is expected to increase from the current 650 to 1200 and that production is expected to jump from 50,000 to 64, 000 tonnes.
He however, declined to disclose the cost of each share, saying it would jeorpadise the on going negotiations between the different parties to the exercise, before listing of the company on the Uganda Securities Exchange.
However The New Vision learnt that the final sale process will involve an initial public offering (IPO) in December, which will close in February 2003. The date of the expected listing on the USE is sometime in March.
Olum said, “We in Parliament agree with privatisation, but in the past lack of transparency in the method used in carrying out the exercise like in UCB was not acceptable to us. I am grateful that the government and Kinyara have adopted this good method this time†Olum said.
KSWL board chairman George Abola said the privatisation of KSWL through the sale of shares was the best method of carrying out the exercise, saying it would give employees and out growers opportunity to acquire ownership in Kakira.
The MPs toured the training centre where locally recruited personnel are trained on specialised and general production skills.
Uganda has a total of three sugar factories.
THE final steps towards privatising Kinyara Sugar Works Limited (KSWL), begin next month in December, the Director of the Privatisation Unit (PU) Michael Opagi disclosed over the weekend.
“We have already submitted our documentation to the Capital Markets Authority (CMA) for consideration and listing on the stock exchange and as soon as this is done we shall open the offers by December this year,†Opagi said.
Opagi told the Parliamentary Committee on tourism, trade and industry which visited the factory on Saturday under the chairmanship of Nwoya MP, Zachary Olum, that Kinyara had a total of 38 million shares, at least 10% of which would be offered to sugarcane out-growers and factory employees.
Opagi said after privatisation, the number of out growers is expected to increase from the current 650 to 1200 and that production is expected to jump from 50,000 to 64, 000 tonnes.
He however, declined to disclose the cost of each share, saying it would jeorpadise the on going negotiations between the different parties to the exercise, before listing of the company on the Uganda Securities Exchange.
However The New Vision learnt that the final sale process will involve an initial public offering (IPO) in December, which will close in February 2003. The date of the expected listing on the USE is sometime in March.
Olum said, “We in Parliament agree with privatisation, but in the past lack of transparency in the method used in carrying out the exercise like in UCB was not acceptable to us. I am grateful that the government and Kinyara have adopted this good method this time†Olum said.
KSWL board chairman George Abola said the privatisation of KSWL through the sale of shares was the best method of carrying out the exercise, saying it would give employees and out growers opportunity to acquire ownership in Kakira.
The MPs toured the training centre where locally recruited personnel are trained on specialised and general production skills.
Uganda has a total of three sugar factories.