The Initiates Plc (TIP) has acquired an additional 20 per cent equity stake in its Ugandan subsidiary, The Initiates Uganda (TIU), raising its ownership from 35 per cent to 55 per cent and making the East African business a full subsidiary of the Nigerian-listed company.
The acquisition was disclosed in a shareholder notification signed by the company’s Managing Director and Chief Executive Officer, Reuben Mustapha Ossai, and filed with the Nigerian Exchange on May 29, 2026.
Completed on May 5, 2026, the transaction is expected to strengthen TIP’s presence in East Africa’s oil and gas services sector while expanding its access to foreign currency earnings and increasing operational control over the Ugandan business.
The company said the acquisition was funded entirely through internally generated cash, with no external borrowing or issuance of new shares.
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Under the agreement, TIP acquired the additional stake for $2.02 million based on a valuation of $15 million for the Ugandan subsidiary. The deal also gives the company three board seats and veto rights on capital expenditure exceeding $500,000.
Ossai said the transaction aligns with the company’s broader regional growth strategy.
“We’re building a pan-African waste management company, and this is just the beginning,” he said.
TIP noted that the acquisition provides direct exposure to Uganda’s expanding oil and gas industry, where major infrastructure projects are expected to drive demand for environmental management, industrial cleaning and waste disposal services.
The company said TIU’s earnings are denominated in United States dollars, providing revenue diversification and a natural hedge against foreign exchange risks.
Uganda’s oil sector is currently undergoing significant development, particularly with the construction of the East African Crude Oil Pipeline, a project expected to generate new opportunities for support service providers.
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TIP added that the Ugandan subsidiary’s financial performance will begin to be consolidated into the group’s accounts from the fourth quarter of 2026.
The acquisition follows a strong financial performance by the company in 2025. Pre-tax profit rose by 147.1 per cent to N5.07 billion, while revenue more than doubled to N11.7 billion, supported largely by growth in its waste management operations.
The company’s shares gained 3.46 per cent to close at N28.40 on May 29. Since the beginning of 2026, the stock has advanced by 114 per cent on the Nigerian Exchange.
