UMEME restricts shares sale to Ugandans

Electricity distribution company UMEME has closed the sale of its shares to international companies.

Yesterday the company resumed trading on Uganda Securities Exchange after a two-week voluntary suspension.

The power distributor suspended trading of its shares on May 6, to allow UK-based private equity firm Actis to dispose of a significant portion of its 60.08 per cent stake in Umeme through the stock market, without disrupting the price of the company’s shares at the bourse.

The company’s top management told journalist after today’s Annual General Meeting that they have stopped the sale of shares to international companies and are now selling to Ugandans at a discount.

The Chairman Board of Directors Patrick Bitature said that they are not trying to lure Ugandans into supporting them to stay in business but are rather empowering them.

All this follows a parliamentary report that recommended that the UMEME contract be terminated over poor service delivery

Written by Reporter