Uganda Clays Limited, the manufacturers of clay construction materials, is negotiating for credit worth Shs11.5 billion from the National Social Security Fund (NSSF). The UCL Finance Manager Richard Kajungu told shareholders at the company's Annual General Meeting that the NSSF Board has approved the loan, which will be given to the company at between 13 and 15Â per cent interest which is below the bank rates. Shs3 billion of the loan will be used to facilitate the second phase of the factory slated to start next year. The company also plans to modernise its semi -automated Kajjansi-based factory by 2013. The other part of the money will help the company cut back costs of financing outstanding loans it received from Standard Chartered Bank and the East Africa Development Bank. The loans were secured three years ago to help the company construct its second factory in Kamonkoli in eastern Uganda. The new brick and tile factory cost Shs36 billion in equity and loans. By the end of last year, the company's debt obligations stood at Shs13.6 billion compared to Shs7.7 billion in 2008.
SABMiller targets Australia's Fosters
Nile Breweries parent company, SABMiller Breweries Plc, is considering a stake in Foster's Group beer operations but has not decided on making a formal offer. The Australian brewers beer operations could be worth more than $10 billion. A number of potential suitors including SABMiller and Japanese Asahi have been looking at the business since Foster's announced formal plans to split its beer and wine operations earlier this year. An Australian newspaper reported last week that SABMiller had hired JPMorgan and Royal Bank of Scotland as advisers for a potential bid but no decision has yet been made. Foster's runs one of the highest-margin brewing operations in the world. Its brands include Foster's Lager, Victoria Bitter and Pure Blonde. SABMiller generates about 85 percent of its profits from the emerging markets of Latin America, Africa and Asia.
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