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Actis, the emerging markets-focused private equity firm, has divested its remaining 14.3 per cent stake in Umeme Limited, Uganda’s main electricity distribution company, according to a statement released by Umeme on Wednesday.

The London-based private equity investor sold its stake to institutional and retail investors via a public offering at both the Uganda and Nairobi stock exchanges, allowing Umeme’s shares to resume trading. The National Social Security Fund, Uganda’s sole private sector pension fund, acquired 7.5 per cent of the 14.3 per cent stake – becoming Umeme’s largest shareholder with 23 per cent shareholding.

“We are enormously proud of what Umeme has become,” said David Grylls, a Partner at Actis. “Eleven years ago we saw an opportunity for Uganda’s electricity distribution sector to be transformed into a world-class enterprise. Through capital investment, operational improvements specifically focusing on loss reduction and increasing access to electricity . . . , Umeme built what is today a financially sound distribution business with world class management and a clear vision and trajectory for continued success.”

In 2005, Actis took over ownership of Umeme, which had acquired a 20-year concession from the Ugandan government. Since then, Actis has led investments of up to $400 million in Umeme’s ailing distribution network, taking customer connections from 355,000 in 2009 to 794,000 in 2015 and replacing over 210,000 power poles. Electricity sales have also increased from 1,401 gigawatt hour to 2,458 gigawatt hour and energy losses dropped from 35 per cent to 19.5 per cent over the same period.

Actis has divested its stake from a number of companies in Africa over the last few years. In May 2014, Actis announced the completion of its divestment from Egypt’s Commercial International Bank (CIB), the country’s largest private-sector bank. The private equity firm also substantially exited from Alexander Forbes Group Holdings, one of South Africa’s leading diversified financial services companies in July 2014. In August of the same year, Actis sold its stake in Diamond Bank Plc, Nigerian commercial bank, to Kunoch Holdings, after the private equity firm said it had realized its investment in the bank.

The global pan-emerging market private equity investor sold half (or 15 per cent) of its stake in Edita Food Industries, the largest independent snack food business in North Africa, in April 2015. In July of last year, Actis sold its majority shareholding in Mouka Limited, a leading Nigerian mattress brand, to Abraaj, a private equity investor. Actis made its second divestment of the year in Nigeria when the private equity firm sold its stake in Ikeja City Mall in November to two South African firms, Hyprop Investments and Attacq Limited.    

Actis exited Globeleq Africa, the leading power generation platform in Africa, in September of last year, after sellilng a 30 per cent stake in Globeleq Africa to a company owned by Norfund, the Norwegian investment fund for developing countries and CDC Group. In March 201, Actis confirmed an agreement to sell Emerging Markets Payments, the leading Africa and Middle East payments business, to Network International, a leading provider of payment solutions in the Middle East.

Actis began divesting from Umeme in November 2012 by selling a 39 per cent stake in the Ugandan company via an initial public offering in the Ugandan and Nairobi stock exchanges. In June 2014, Actis sold a further 46 per cent stake in Umeme, reserving a minority stake of 14.3 per cent. Umeme reported revenues of 1.16 trillion Ugandan shillings ($320.5 million) and pre-tax profit of 248 billion Ugandan shillings ($76.4 million).

Founded in 2004, Actis is a leading private equity investor in emerging markets across Africa, Asia, and Latin America. The company has about $6.6 billion in funds under management and has invested about $3 billion so far in African businesses across 23 countries.