Jubilee Holdings Chairman Nizar Juma. FILE PHOTO | NMG Jubilee Holding has bought an additional 9.44 percent stake in Uganda’s Bujagali Energy Limited (BEL) for Sh4.2 billion ($40 million), doubling its ownership in the hydroelectric power plant.
The firm announced Tuesday it bought more shares from its technical partners, SN Power, in the 250-megawatt Bujagali dam on the River Nile.
Jubilee bought the stake after former partners Sithel Global exited in July 2018, leaving the stake to SN Power, which remains with a majority shareholding of 55.45 percent.
The latest acquisition now takes Jubilee’s ownership in the plant from 8.8 percent to 18.24 percent that is estimated to be worth Sh6.3 billion.
The insurer made its first investment in the plant in 2016 for Sh2.1 billion ($20 million).
Jubilee Holdings Chairman Nizar Juma said the additional stake would earn the insurer higher returns.
“We are very pleased with this additional investment in Bujagali. We have confidence that it will continue to provide us with stable and consistent returns as has been the case with all our existing investments,” he said.
“Jubilee Holdings would like to extend its appreciation to all partners and stakeholders that have supported us in completing this deal.”
Mr Juma said the deepened investment in BEL is line with Jubilee’s strategy to hold a broadly diversified and conservative portfolio of investments.
Jubilee had Sh112.2 billion or 86.2 percent of the Sh130.2 billion total assets held in non- insurance businesses such as quoted securities, government bonds, real estate and unquoted securities at the end of December 2019.
Other investments are in projects that generate dollar returns, interests in Farmer’s Choice, Property Development and Management and IPS Cable Systems Limited.BEL is a special purpose company that owns the 250-megawatt Bujagali Hydropower Project, which was built at an estimated cost of Sh95.9 billion ($900 million) through debt and equity financing.