Nigerian waste management and industrial services company The Initiates Plc has acquired an additional 20% equity stake in its Ugandan subsidiary, The Initiates Uganda, increasing its ownership from 35% to 55% and making the Ugandan operation a full subsidiary of the group.
The transaction, completed on May 5, 2026, was valued at approximately $2.02 million, based on an overall valuation of $15 million for the Ugandan business. The acquisition was funded entirely through the company’s internal cash flow, with no external borrowing or equity issuance required.
According to the company, the deal forms part of its broader strategy to build a pan-African waste management and environmental services business while expanding its presence in East Africa’s growing oil and gas industry. Uganda’s rapidly developing petroleum sector is expected to create increasing demand for environmental management, industrial cleaning, and waste treatment services.
Following the acquisition, The Initiates Plc will secure three board seats in the Ugandan subsidiary and obtain veto rights on capital expenditure decisions exceeding $500,000, giving it greater operational and strategic control over the business.
The company noted that one of the key benefits of the transaction is access to US dollar-denominated earnings, which could provide revenue diversification and help reduce foreign exchange risks associated with operating primarily in Nigeria.
Managing Director and Chief Executive Officer, Reuben Mustapha Ossai, described the acquisition as a significant milestone in the company’s regional expansion plans, emphasizing its ambition to establish a stronger footprint across African energy markets.
Industry analysts believe the move positions The Initiates Plc to benefit from opportunities arising from major energy projects in East Africa, including developments linked to the East African Crude Oil Pipeline (EACOP) and Uganda’s expanding upstream oil and gas sector.
The company also disclosed that the financial performance of the Ugandan subsidiary will begin to be reflected in the group’s consolidated accounts from the fourth quarter of 2026, providing investors with greater visibility into its contribution to earnings.
The acquisition follows a strong financial performance by The Initiates Plc in 2025, during which the company reported substantial growth in revenue and profitability, reinforcing its capacity to pursue strategic expansion opportunities across the continent.
