Umeme selects two directors on Actis exit

Umeme technicians repair power lines in Kampala. The power distributor has announced new board changes. File photo

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The company had announced board changes to reflect new shareholding after major owner, UK private equity firm Actis, began gradual exit.

Nairobi- Power distributor Umeme has filled board positions left vacant on exit of two directors last November.

Mr Piet Faling and Mr Ivan Kyayonka have been appointed non-executive directors to replace Younes Maamar and Ian Francis representing Actis who resigned in late November following a major change in ownership structure.

Board changes
The cross-listed company had announced board changes to reflect new shareholding after major owner, UK private equity firm Actis, began gradual exit.

“The above appointments are in line with the company’s board composition strategy to include executive, non-executive and resident directors and in broadening its shareholder representation,” said the company in a statement.

Actis had a 60.08 per cent shareholding in Umeme but sold most of it to institutional and retail investors, reducing its stake to 14.30 per cent by June last year.
London and Johannesburg-listed Investec Asset Management became the largest shareholder with 18.47 per stake while Uganda National Social Security Fund (NSSF) was third largest with a 14.27. Farallon Capital had a 7.82 per cent shareholding.

Background
Mid last year, Actis shareholding in Umeme dropped from 60.30 per cent to 14.30 per cent in a month in a strategic partial exit.

The UK-based private equity firm was said to have been selling its stake in the power firm with regional institutional and retail investors as well as Umeme employees among the major takers.

“The successful take-up of Shs18.4 billion by retail investors over a short 10-day trading period further validates the deepening of Uganda’s capital markets and the broad appeal of the Umeme story across all investor classes,” said Patrick Mweheire, then lead transaction adviser at Stanbic Bank in a statement.

Umeme’s management and directors also increased their shareholding to five per cent from two per cent.
South African and London-based firm Investec which has 18.47 per cent stake, replaced Actis as the largest shareholder.

Other large shareholders are the National Social Security Fund with a 14.27 per cent stake and Farallon Capital which has a 7.82 per cent shareholding.
The share is cross-listed on both the Nairobi Securities Exchange and the Uganda Securities Exchange.