NIC to Sell Shares to the Public Tomorrow

Kampala, Dec 30, 2009 (The Monitor/All Africa Global Media via COMTEX) -- Tomorrow, the National Insurance Corporation is expected to announce the sale of government's 40 per cent stake to the public; more than two months since it was last supposed to go public.

"The sale will be launched on December 31," reads an email sent to the Daily Monitor yesterday about the listing on the Uganda Stock Exchange; an event that has been postponed several times due to disputes with Makerere University its major client.

Mr Japheth Katto, the chief executive officer of the Capital Markets Authority said NIC has met its Initial Public Offer IPO - and listing requirements. "They have complied with the prospectus requirements and we have no objection to the IPO going ahead," he said last evening.

The authority, a body responsible for regulating capital markets, had sent NIC back to the drawing board to include information about the dispute with the Makerere University over the latter's Deposit Administration Plan. CMA's signal of approval means the insurance firm can go ahead to launch its bid for public sale and eventually becoming the 12th listed company on the stock exchange.

Makerere had threatened to sue should the insurer go ahead to sell shares without stating in its prospectus that it owed the university staff Shs17b. NIC claimed that the fund in question was Shs16 as at end of 2008.

A source at NIC said Makerere's concerns had been addressed "out of respect". But Makerere staff association boss Tanga Odoi threatened "protest" saying they have not ironed out their differences. "We can't accept NIC to be listed when they have not stated how much money they owe us," said Mr Odoi said. Industrial and General Insurance PLC, a Nigerian company, owns the other 60 per cent shares in NIC.