The Initiates Plc (NGX: TIP), has announced the acquisition of an additional 20% equity stake in its Ugandan affiliate,
The Initiates Uganda (TIU), increasing its total ownership to 55%.
The acquisition completed on 5 May 2026, transforms TIU into a full subsidiary of The Initiates Plc and marks a significant milestone in the company’s pan-African expansion strategy.
The transaction valued TIU at $15 million, with TIP paying $2.02 million for the additional stake, fully funded from internal cash flows.
In an official statement posted on NGX and seen by Investogist, the company highlighted the strategic importance of the deal:
- Regional Expansion: The acquisition provides TIP with direct access to Uganda’s rapidly growing oil and gas sector and positions the company as a gateway into the broader East African market.
- Diversification: TIU’s earnings, denominated in US Dollars, are expected to enhance TIP’s overall revenue profile and reduce exposure to naira volatility at the holding company level.
- Operational Synergies: TIU will benefit from TIP’s extensive industry experience and technical expertise, while TIP gains a stronger regional platform to improve margins across both entities.
Commenting on the development, Reuben Mustapha Ossai, Managing Director/CEO said;
We are building a true pan-African waste management company. This transaction is just the beginning. By deepening our presence in Uganda, we are creating long-term value for our shareholders through diversified earnings and strategic market access.
The company highlighted several key benefits for shareholders from the transaction:
Shareholders will now enjoy broader market exposure, gaining indirect access to Uganda’s fast-growing oil and gas sector without additional foreign exchange risk at the holding company level.
On the governance front, The Initiates Plc (TIP) will secure three board seats in The Initiates Uganda (TIU) and exercise veto rights on capital expenditures exceeding $500,000.
Additionally, starting from the fourth quarter of 2026, TIU’s financial results will be equity-accounted and consolidated into TIP’s financial statements.
About the company
The Initiates Plc is listed on the Nigerian Exchange specialising in waste management and industrial cleaning services. The company has its headquarters in Port Harcourt, and operates across multiple sectors, with a growing focus on the oil and gas industry.
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