The National Social Security Fund has bought more shares in power distributor Umeme, increasing its stake from 14% to 23 %.
NSSF boss Richard Byarugaba said Fund’s decision was in line with “our statutory mandate to invest NSSF members savings for high returns.”
He said the Fund has reached an agreement to buy 121.8million shares from Umeme Holdings Limited at a price of Ushs 488 per share, lower than the current market price of Shs525.
The development came just before Umeme suspended trading of its shares on the stock exchange. Umeme also intends to sale the remaining shares. Umeme Holdings Limited, first ceded its majority shareholding in Umeme in 2014 decreasing its stake from 60% to 14.3% through a secondary public offering on the USE and Nairobi Stock Exchange.
Since 2005, Umeme has significantly contributed to the electricity supply industry through investment of up to US$440million in the distribution infrastructure, reduced energy losses by half to 19%, and improved sector cash flows. The firm is currently connecting over 140,000 customers per annum.