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However, mandatory approvals from Capital Markets Authority and Comesa delayed for months, with the last one coming in at the end of October.
The deal, which will see Cipla dispose of its 51.18 stake in Quality Chemicals, was completed on November 14. This is according to a notice filed through Uganda Securities Exchange. However, the delay impacted contract manufacturing.
This declined by 80 percent due to “uncertainty regarding the closing of the sale” even as the company registered significant revenue growth in most customer segments.
Cipla, an India-based drug maker, acquired a majority stake in Quality Chemicals in 2015 at a reported $26m (Shs98.3b). This had been revised from a tranche consideration of $30m over a five-year payment schedule.
The drug maker, which runs different production lines including antiretrovirals and anti-malarials, among others, last week indicated the shareholding structure of Quality Chemical would effectively change.
This is after disposing of its 51.18 percent stake to Mauritius-based equity fund Africa Capitalworks.
Africa Capitalworks’ is now Quality Chemical’s largest shareholder ahead of Amistad and SCB Mauritius a/c Capitalworks SS. They both hold a stake of 11.51 percent and 11.15 percent, respectively.
Other shareholders include Government Employees Pension Fund (8.54 percent) and, National Social Security Fund (7.38 percent). Emmanuel Katongole (2.79 percent), Frederick Mutebi Kitaka (2.79 percent), George Willy Baguma (2.79 percent), Joseph Yiga (0.11 percent) and UAP Insurance – Life Fund (0.07 percent)
In the six months ended September, Cipla reported an increase in revenue by 1 percent to Shs121.2b. The increase was largely due to higher drug orders from institutional bodies and sovereign customers.
This rose to Shs5.7b and by Shs13.9b, respectively. Private sector sales rose by Shs1.7b or 52 percent. However, slow demand due to uncertainty on the transfer of shares offset the positive financial indicators.
Africa Capitalworks returns to Quality Chemical having withdrawn from the business prior to September 2018 when the company floated an initial public offering.
During the period that ended in September, Cipla reported a 74.3 percent drop in profits to Shs3.6b from Shs13.9b due to a shift in the company’s product mix.
Cipla also indicated it had fully recovered the debt due to Zambia with the last collection of Shs9.4b coming in in the period under review. They had for many years provisioned for the debt, whose recovery had taken longer than planned.
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![[dropcap]A[/dropcap] section of women in Bugongo parish and Nawangaiza parish in Nawandala Sub County, Iganga District have decried the near-impossible terms set for them to access GROW funds. They have now petitioned their woman member of parliament for Iganga Hon. Kauma Sauda Alibaawo to ask the government for revised terms and conditions. This is to enable them to benefit from the program. The disgruntled women accuse the implementers of the program of charging the money. They are also asking for their land titles and land agreements. They said that such properties are governed by their husbands. These, therefore want the government through their woman MP to intervene and revise the requirements for one to benefit. The women were on Wednesday at Namabwere primary school in Nawandala Sub County. They had gathered in their respective groups to receive over 300 chickens from Hon Alibaawo in her campaign to improve the livelihood of women in Iganga district. Each group was given 50 chicken as start-up capital in their journey to prosperity. Read what some leaders said; Ms Naigambi Lydia from Nawandala Trading Centre says, “They solicited money from us through opening bank accounts and depositing Shs80,000. They also asked for land titles and land agreements from us yet we don’t have such things. I was informed that I needed to have a business with a capital of Shs4m yet my capital was very small.” The chairperson Kisoboka Saving Group in Nawandala Ms. Nakagolo Faith said they were not able to join the program. This is given the many conditions attached. She also asked their woman MP to raise their concerns to the relevant offices. The MP condemned the mode of implementation of the program. She cited that it has turned to benefit the well-off class of women other than the intended group. She further asked the government to intervene saying the current strings attached to the programme are very tight to accommodate a common woman. GROW project is a Government of Uganda initiative that arose out of the need to respond to the needs of women entrepreneurs. This is especially those who want to grow their businesses, sustain their self-employment and create more jobs. Check Also; Iganga District NRM Leaders Urge Museveni To Fulfill Election Promises Of 2021 International Women's Day: Celebrating Progress Towards Equality](https://i0.wp.com/newslexpoint.com/wp-content/uploads/2024/11/Iganga-women-decry-tough-terms-to-access-GROW-funds-e1731738339732.jpg?resize=300%2C160&ssl=1)
