Jubilee bags another 9.4 per cent of Bujagali
Wednesday, July 1st, 2020
Jubilee Holdings Limited (JHL) has purchased a further 9.44 per cent interest in Bujagali’s equity from the technical partners SN Power for a consideration of $40 million (Sh4.2 billion).
Bujagali which cost approximately $900milion (Sh96 billion) to build was funded through a combination of equity and debt financing and the deal will increase Jubilee’s shareholding in Bujagali Energy Limited (BEL).
Jubilee Holdings Group chairman Nizar Juma said the additional investment in Bujagali will continue to provide the firm with stable and consistent returns.
“Investment in Bujagali is part of JHL’s strategy to hold a broadly diversified and conservative portfolio of investments amounting to Sh111.2 billion, as part of the total assets of Sh130.2 billion as at 31 December 2019.
The core investment holdings include quoted securities, government bonds, real estate, unquoted securities and interests in firms like Farmer’s Choice and Seacom,” he said.
The Bujagali Hydropower Project is widely considered the most successful public private partnership in the power sector in Sub-Saharan Africa and has been used as a model for subsequent projects in the region.
“JHL would like to extend its appreciation to all partners and stakeholders that have supported us in completing this deal,” Mr. Juma added.
The project has created over 200,000 indirect jobs and is supporting over 800,000 new electricity connections since its commissioning.
The opportunity to purchase a further interest by JHL from SN Power became available in July 2018 following the exit of former partners, Sithe Global. Now SN Power remains with an economic majority of 55.45 per cent shares in BEL.