The Initiates Plc (TIP) has increased its ownership stake in The Initiates Uganda (TIU) to 55 percent following the acquisition of an additional 20 percent equity interest in the East African company.
The company disclosed on Friday that the transaction was completed on May 5, 2026, at a purchase consideration of $2.02 million.
The acquisition elevates The Initiates Uganda from an associate company to a full subsidiary of The Initiates Plc.
According to the company, The Initiates Uganda is currently valued at approximately $15 million and operates within Uganda’s growing oil and gas sector.
Management described the transaction as a key milestone in its long-term growth strategy aimed at transforming the company into a leading pan-African waste management and industrial cleaning services provider.
The acquisition is expected to strengthen The Initiates Plc’s presence beyond Nigeria by providing direct access to Uganda’s oil and gas industry and creating a strategic entry point into the broader East African energy market.
The company noted that the transaction would also diversify earnings sources as revenue generated by the Ugandan subsidiary will be denominated in United States dollars, providing an additional layer of earnings stability and foreign currency exposure.
“The acquisition supports our regional expansion strategy and positions us to leverage opportunities within East Africa’s growing oil and gas industry,” the company stated.
Management added that operational synergies between the Nigerian and Ugandan businesses are expected to improve profitability through the sharing of technical expertise, industry experience and operational best practices.
The deal was financed entirely through internally generated cash flow, underscoring the company’s liquidity position and ability to fund strategic growth initiatives without taking on additional debt.
As part of the new ownership structure, The Initiates Plc will hold three board seats in The Initiates Uganda and retain veto rights on capital expenditure decisions exceeding $500,000.
The company said these governance provisions will strengthen oversight and ensure alignment between the parent company and its East African subsidiary.
For shareholders, the transaction provides indirect exposure to Uganda’s oil and gas industry through The Initiates Plc while limiting direct foreign exchange risks at the holding company level.
The company also disclosed that beginning from the fourth quarter of 2026, the financial performance of The Initiates Uganda will be reflected in The Initiates Plc’s financial statements through equity accounting.
Commenting on the development, Managing Director and Chief Executive Officer, Reuben Mustapha Ossai, said the acquisition represents another step in the company’s ambition to build a continental waste management and environmental services group.
The latest investment comes as Nigerian companies increasingly seek regional expansion opportunities across Africa to diversify earnings, strengthen foreign currency revenue streams and capture emerging opportunities within the continent’s fast-growing energy sector.
With majority ownership now secured in Uganda, investors will be closely watching how the acquisition contributes to revenue growth, profitability and long-term shareholder value in the coming quarters.
