The Initiates Plc has increased its stake in its Ugandan subsidiary to 55 percent after acquiring an additional 20 percent equity interest in a $2.02 million transaction, strengthening its expansion drive across Africa’s oil and gas services market.
The waste management and industrial cleaning company said the acquisition, completed on May 5, 2026, raises its holding in The Initiates Uganda (TIU) from 35 percent to a majority stake, making the East African business a full subsidiary of the Nigerian-listed firm.
The company valued TIU at $15 million in the transaction and said the acquisition was funded entirely through internal cash flow, underscoring its financial capacity to pursue regional growth without taking on additional debt.
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Management described the deal as a major milestone in its growth strategy, providing direct access to Uganda’s expanding oil and gas sector and positioning the company to benefit from opportunities across East Africa.
“Regional expansion gives TIP direct access to Uganda’s growing oil and gas industry and a gateway into East Africa’s oil and gas market,” the company said in a notice to shareholders.
The acquisition comes as Nigerian companies increasingly seek growth opportunities beyond domestic markets amid currency volatility and economic headwinds. For The Initiates Plc, the deal is expected to diversify earnings through increased exposure to dollar-denominated revenues generated by the Ugandan business.
According to the company, TIU’s earnings in U.S. dollars are expected to enhance overall profitability and strengthen financial performance, while operational synergies between both entities could improve margins through the sharing of technical expertise and industry experience.
The transaction also grants The Initiates Plc greater influence over the strategic direction of its Ugandan subsidiary. Under the new ownership structure, the Nigerian company will hold three seats on TIU’s board and retain veto rights over capital expenditure projects exceeding $500,000.
For shareholders, the company said the deal offers indirect exposure to Uganda’s oil and gas industry without creating additional foreign exchange risk at the holding company level.
The company further disclosed that TIU’s financial performance will begin to be reflected in its accounts from the fourth quarter of 2026, providing investors with greater visibility into the contribution of the East African business.
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Reuben Mustapha Ossai, managing director and chief executive officer of The Initiates Plc, said the company remains focused on building a pan-African waste management business through strategic expansion into high-growth markets.
“We’re building a pan-African waste management company, and this is just the beginning,” Ossai said.