@young

1) I am Kenyan so I will not invest in Kenyan shares in Uganda.

2) I was just describing my losses in Uganda due to the currency falling off a cliff.

3) The UGX might depreciate even further as museveni feels only he is qualified to run the country. Africa's curse. The african big idiot. Peers include mugabe, mubarak, wade, etc

Nation Media Group cross-listing set for next week

FROM DAILY MONITOR

Posted Friday, October 15 2010 at 00:00

Nation Media Group will on Tuesday, October 19 list its shares at the Uganda Securities Exchange at 10am on the floor of the exchange.
This follows approvals by the Uganda Capital Markets Authority and The Uganda Securities Exchange (USE).

The shareholders of the company at the Annual General Meeting held on May 19, passed a special resolution to offer the company shares to investors across East Africa through the cross-listing of the company‘s shares on the USE, the Dar es Salaam Stock Exchange and the Rwanda Over The Counter Market.

This effectively paved the way for the cross-listing of NMG shares after permission was granted by the USE to admit 157,118,572 issued ordinary shares of KShs.2.50 each of the Company to the Official List of the USE under the abbreviation “NMG.”

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NMG to cross-list in Uganda on October 19
Effective listing
It is expected that listing will become effective and that dealings in the ordinary shares of the company on the USE will commence after the listing on October 19, 2010.

The ordinary shares of the Company have a nominal or par value of KShs 2.50 each and rank equally with the right to participate in all future dividends to be declared and paid on the ordinary share capital of the Company.

NMG has been listed on the Nairobi Stock Exchange since 1973 and has a rich tradition of profitability and growth. NMG shares will also be cross-listed in Rwanda on November 2 2010 and in Tanzania shortly thereafter.

This cross-listing of the company’s shares on the USE seeks to: enhance the profile of the firm in Uganda; enable Ugandan investors to share in NMG’s vision as shareholders; recognise the emergence of capital markets growth in Uganda as evidenced by the number of cross-listings and other growth parameters at the USE; and foster the ideals of the EAC Common Market.

Grow diversity
“The cross listing is intended to not only communicate NMG sheer business size and intentions for the East African Community but also grow the level and diversity of owners who will now be able to buy into the company’s vision of Media of Africa for Africa,” Mr Linus Gitahi the NMG chief executive officer, said recently.Linus Gitahi,said recently.

Mr. Wilfred Kiboro, NMG Chairman says of the cross listing, “the Board is confident of the future of the Group’s performance and has continued to increase the shareholders value of the Company and while focusing on its core business activities, continues to explore within the region, for other possible business opportunities”.

Providing transaction advisory is the African Alliance Uganda Limited, acting as both the Lead Transaction Advisor as well as Sponsoring Broker for the listing. Sebalu & Lule Advocates and Iseme, Kamau and Maema Advocates act as legal advisors in Uganda and Kenya respectively for the Company on this

@Young

This is correct. Only difference comes during the bearing and bullish seasons, the Uganda market always lags the Kenyan one. Recation from the Kenyan market is quite fast

Uganda Stocks trade on Monday, Tuesday and Thursdays only

@Guru, i think, its better to buy cross listed stocks from the NSE when the shilling has gained enormously, beyond the historical mean. My guess is that in the next few years, the UGX is going to gain enormously against the KES and the $$. Simply because of the diversity of the economy from an agro-based to a commodity, agro and service based economy. Uganda's coffee is improving, and is now sold in tesco and leading supermarkets in the western world(Good African Coffee), Copper mines in Kilembe will be revamped end of 2011,oil mining by tullow kicks off 2011(am ignoring other explorers in the region), the service industry is predicted to contribute close to 30-40% of GDP by 2013. So the argument may stand. For now though, i think for the investor wanting to buy the cross listed stocks, its better they are bought on the USE, because of the anticipated correction in the forex market. Only challenge is that such counters rarely get trading volumes, e.g of all the 5 cross listed stocks only 2 traded during the year, of which, one counter had a single block trade and since then hasn't traded. Hence, most ugandan investors opt for buying them straight from the NSE.