Umeme stuck with unclaimed dividends of more than 580 shareholders
Umeme says it has tried to reach out to some shareholders with unclaimed dividends without much success. Photo / File
What you need to know:
- Umeme says the shareholder with the most amount of unclaimed dividends has Shs43m
Umeme has published a list of more than 580 shareholders, who it said have not claimed their dividends and are out of reach.
However, the notice does not indicate how long some of the shareholders have not picked their dividends and doesn’t indicate the amount that is held in unclaimed pay-outs.
Mr Julius Muyombya, the Umeme share registrar and shareholder services officer of custody and registrar services, said yesterday the notice had been published on the back of an increase in the number of shareholders who were not claiming their dividends yet Umeme’s concession is nearing its end.
“Some of these people are needed to clear their past dividends because some sold their shares with pending dividends. The shareholder with the most amount of unclaimed dividends has Shs43m. We have contacts of some these people but some of them are no longer on air while for others, we already informed them and they didn’t turn up,” he said, noting that since the notice was published, few shareholders have responded, “which is worrying”.
The notice comes after Umeme, which is cross listed on the Nairobi Securities Exchange, recently announced plans to distribute Shs38b in interim dividends in February next year.
At least a total of 585 shareholders have not claimed their dividends, the notice indicates, noting that “shareholders or their nominated beneficiaries, are requested to contact our share registrar, custody and registrar services” to claim their dividends.
Umeme, whose concession will naturally expire at the end of the 20-year period, remains one of the most profitable companies at the Uganda Securities Exchange.
Its stable dividend policy and continued profitability have bolstered activity on its counter since it was listed on the Uganda Securities Exchange in 2012.
Out of the 11 locally listed companies, Umeme had the largest share of trading activity this year, according to data from stock market broker Crested Capital.
The company has over the years seen its dividends since 2021, rise from Shs124b to Shs200b in 2023, which is in line with its cash generation policy, according to its 2023 half-year financial report.
Umeme’s revenues increased to Shs1 trillion in the six months to June from Shs897b during the same period last year due to an increase in electricity sales from extra-large industries, domestic connections, and street lighting.
Uganda lacks a centralised deposit of unclaimed financial assets, such as dividends.
However, government is considering establishing an entity to correct the anomaly, which could save companies such as Umeme from the burden of having to track down dividend claimants.
Umeme has been reducing its long-term debt to bolster cash flow for its shareholders.
By the end of June 2023, Umeme’s debt had significantly decreased from Shs268.8b to Shs74b.
Umeme is also optimising its capital expenditure on growth, dependability, and efficient projects to maximise the recovery of the buyout amount at the natural end of the concession in 2025.
Umeme’s most recent data indicates that due to the depreciation of its assets, the buyout amount fell to Shs256.8b by June.
Buyout amount
Umeme has been reducing its long-term debt to bolster cash flow for its shareholders.
By the end of June 2023, Umeme’s debt had significantly decreased from Shs268.8b to Shs74b.
Umeme is also optimising its capital expenditure on growth, dependability, and efficient projects to maximise the recovery of the buyout amount at the natural end of the concession in 2025.
Umeme’s most recent data indicates that due to the depreciation of its assets, the buyout amount fell to Shs256.8b by June.
