On 28th June 2000, British American Tobacco (Uganda) Ltd shares were floated to the public for subscription through the USE.
BATU shares, which were 5% oversubscribed, represented the second divestiture of government held shares in a company the Exchange.
Incorporated in Uganda under the Companies Act (cap.85) BAT (Uganda) Ltd has 64 million authorized ordinary shares of Ushs.1.25 representing an Authorized share capital of Ushs. 80 million and 49.08 million issued and fully paid shares representing an Issued share capital with a nominal value of Ushs.61.4 million. As of the 12th of September, 2002, BATU had a capitalization of Ushs.58.9 billion.
BAT Uganda is the leading tobacco growing and processing company in Uganda. Its brands include Benson & Hedges, Embassy, Rex, Sportsman and many others which make BAT Uganda one of the largest tax contributors in the state.
A brief history of BATU
BATU is a subsidiary of BAT(investments) Ltd., UK, one of the leading players of the global tobacco business The history of BATU dates back to 1927, when commercial varieties of tobacco were introduced in Uganda. Tobacco is now a key cash crop in the country.
In 1928, the company built its first cigarette factory in East Africa at Jinja.
In 1949, it acquired the East African Tobacco Company Limited which had started in Tanganyika in 1934 and operated its own factory in Kampala. This became the main operating company of BAT in East Africa for the next 15 years.
In 1972, the company was nationalized due to the Properties and Business (Acquisitions) Decree of 1972 made under President Idi Amin Dada’s Government.
In 1982, BATU applied to the government under the Expropriated Properties Act, 1982 leading to the joint venture of 1984 that granted BAT (investments) Ltd UK, preemptive rights over the government’s shareholding in BAT Uganda. Government then undertook to divest its holding in the company to members of the Ugandan Public and other investors.
In April 1988, B.A.T. Uganda 1984 changed its name to British American Tobacco Uganda Limited and in July 1988 the company adopted the new British American Tobacco universal corporate identity and became known as British American Tobacco Uganda.
In 2000 BATU resolved to become a public company leading to its listing on the USE