Securities exchange suspends Umeme counter
USE noted that the move aims at safeguarding investor interests and ensuring market transparency amid ongoing public speculation about the expiration of Umeme concession agreement and the final buyout amount.
USE said that during the period Umeme is required to address unresolved concerns related to price-sensitive information and mitigate potential market disruptions linked to the impending end of its concession period.
Ali Twaha
Journalist @New Vision
KAMPALA - The Uganda Securities Exchange (USE) has temporarily suspended trading in the shares of Umeme immediately.
In a public notice, USE noted that the move aims at safeguarding investor interests and ensuring market transparency amid ongoing public speculation about the expiration of Umeme concession agreement and the final buyout amount.
“The suspension shall take effect on Monday 31st March 2025 for a period of two weeks to enable the company address key concerns regarding price-sensitive information and to mitigate the potential impact of the end of the concession period,” the notice read in part.
By close of trading on March 28, Umeme was trading at sh415 per share. The number of offers or sellers on the counter were worth about sh53m. The bids of buyers were valued at sh2m according to market data from Crested Capital.
USE said that during the period Umeme is required to address unresolved concerns related to price-sensitive information and mitigate potential market disruptions linked to the impending end of its concession period.
The 20-year Umeme concession for electricity distribution ended after the 28th of February 2025 and is currently in the retransfer transition period.
Umeme submitted an estimated buyout amount of $234m to the government through the office of the auditor general.
The buyout amount to be paid to Umeme is for the company’s unrecovered investments in the power sector during the concession period.
On 20 March 2025, Parliament adopted the proposal for government to borrow over $190m from Stanbic Bank, on condition of confirmation of actual monetary amount of Umeme’s investment by the Auditor General.
Recently, having completed the audit process, the Auditor General revised the buyout amount to $118m against the approved $190m.
In the press statement of March 26, Umeme noted that the Buy Out Amount must be paid within 30 days following the end of the concession term, specifically by 31 March 2025.
“If the payment is not received by this deadline, penal interest will be applied as stipulated in the Concession Agreements,” Umeme said.