The government of Uganda which owns 49% of the shares in Kinyara Sugar Works has announced plans to sell off its stake in the country’s second leading sugar factory.
The Privatization Unit under Uganda’s Ministry of Finance Planning and Economic Development has indicated that the government is ready to make an Initial Public Offer (IPO) for its shares in Kinyara Sugar Works in early 2011.
The Communications manager of the Privatization Unit, Jim Mugunga says Kinyara Sugar Works is in the process of producing a transaction advisor for the IPO for the shares before they are listed on Uganda’s Stock Exchange.
After attracting the Rai Group which bought majority stake in the formerly government wholly owned sugar enterprise, the government is now looking to sell off the remaining shares to the public to raise more revenue and improve production capacity for the factory that markets its sugar in Uganda and neighbouring Rwanda, Kenya, Tanzania, Burndi, Sudan and Democratic Republic of Congo.
Mugunga says since its divesture, Kinyara Sugar works has improved operations and grown into one of the most profitable companies in Uganda boosting the country’s revenue earnings.