International investment funds biggest winners in Umeme dividend payments

Umeme Ltd this year will be paying dividends of Shs7.6 per share, the board decided. In total, the company – which got a gross profit of Shs515.9bn – will pay over Shs12bn in dividends to shareholders.

This will be much less than the Shs18.8 they paid per share last year.

The utilities company which is listed on the Uganda Securities Exchange and cross-listed on the Nairobi Securities Exchange had 5,600 shareholders as at 31 December 2017. They held a total of 1,623,878,005 shares.

Over 90% of the 1.6 billion shares are held by 126 shareholders who each have more than 1 million shares in the company.

The top ten shareholders who will be the biggest earners when the company pays dividends are mostly international investment funds – with the exception of the National Social Security Fund which is the largest shareholder at 23.3% after the exit of Actis, a London-based private equity fund.

NSSF will be paid Shs2.9 billion.

Allan Gray, a South Africa-based Equity Fund, is the second biggest earner. Allan Gray increased its shareholding over the reporting year period, from 5.5% to 9.6% with 67 million more shares. The Fund will be paid Shs1.2 billion.

The World Bank’s investment arm, International Finance Corporation, earned Shs343,678,840 from their shareholding.

Other funds in the top ten shareholders include Kimberlite Frontier Market Master Fund and The Africa Emerging Markets Fund which are both incorporated in the Cayman Islands and operated by U.S-based firms.

Kimberlite Frontier Market Master Fund is the third largest shareholder and will earn Shs1bn while The Africa Emerging Markets Fund earned Shs486,885,541.

Imara S P Reid (Pty) Ltd owns 2.5% and is receiving a payment of Shs304,593,628. It is a Johannesburg-based firm now known as Momentum S P Reid Securities (Pty) Ltd.

Most of the funds with shares in Umeme Ltd focus mainly on emerging markets.

Utilico Emerging Markets, which is listed on the London Stock Exchange, is a British investment company “dedicated to investments in infrastructure, utility and related sectors in the emerging markets”.

Utilico Emerging Markets earned Shs531,329,588.

Investec Asset Management Africa, now a global franchise, started in South Africa. It is one of only two shareholders on the list that reduced their shareholding. The firm earned Shs546,541,855.

Duet Fund is the other fund that reduced their shareholding from 2016 to 2017. It is a London-based asset manager with several interests in sub-Saharan Africa. The fund is getting Shs302,449,782.

Coronation Global Opportunities Fund, based in South Africa, will be paid Shs320,153,572.

Related: Shocks ahead for Uganda electricity users as rule change jolts Umeme 2017 profit

Top ten shareholders:

Shareholder No. of shares Percentage shareholding Earning Country
1 NSSF 376,315,085 23.2% 2,859,994,646 Uganda
2 Allan Gray 156,332,791 9.6% ⇑ 1,188,129,211 South Africa
3 Kimberlite Frontier Africa Master Fund 134,186,083 8.3% ⇑ 1,019,814,230 Cayman Islands
4 Investec Asset Management Africa 71,913,402 4.4 ⇓ 546,541,855 South Africa
5 Utilico Emerging Markets Ltd 69,911,788 4.3 531,329,588 United Kingdom
6 The Africa Emerging Markets Fund 64,063,887 3.9 ⇑ 486,885,541 Cayman Islands
7 International Finance Corporation 45,220,900 2.8 343,678,840 World Bank*
8 Coronation Global Opportunities Fund 42,125,470 2.6 320,153,572 South Africa
9 Imara S P Reid (Pty) Ltd 40,078,109 2.5 ⇑ 304,593,628 South Africa
10 Duet Fund 39,796,024 2.5⇓ 302,449,782 United Kingdom