ANNOUNCEMENT: CEC & Liquid Telecom to form telecommunications joint venture
The Copperbelt Energy Corporation Plc (CEC) and Liquid Telecommunications Holding Limited (Liquid Telecom) have announced a joint venture (JV) agreement through which a new company, CEC Liquid Telecommunications Limited, will be created. The JV will build and provide services on a next generation high capacity fibre optic telecommunications network in Zambia.
CEC and Liquid Telecom will each have 50% participating interest in the JV business, which will be a provider of wholesale capacity and terrestrial internet bandwidth using fiber-optic technology to public and private operators licensed by the Zambia Information and Communications Technology Authority (ZICTA). The JV will be initially capitalized with an investment of around $30m, shared equally between the parties.
The transaction has been approved by the boards of both companies subject to regulatory approval from ZICTA, the Competition and Consumer Protection Commission and other relevant stakeholders.
The new JV will provide services on an operator neutral basis and will not participate in the retail market segment, although end-users will benefit from cheaper and faster internet and other data services as the new JV significantly increases the capacity available in Zambia.
The JV will introduce a number of advanced technologies and services including the implementation of Multiple Protocol Label Switching (MPLS) technology.
About CEC
CEC is a Zambian electricity utility whose core business is the supply of power to the mining industry and transmission for national utilities, ZESCO Limited of Zambia and SNEL of the Democratic Republic of Congo.
CEC owns and operates 884 km of 220kV and 66kV transmission lines, 38 major substations, 80MW of gas turbine generation, 540 km of optic fibre on power lines and 250 km of last mile fibre in trenches. CEC has installed last mile fibers in the high streets of several towns in Zambia, and provides telecommunications services under a Public Network Licence.
About Liquid Telecom
Liquid Telecom is a company headquartered in Mauritius and has a presence in Zambia, United Kingdom, South Africa, Botswana, Zimbabwe, Lesotho, and Kenya. It is a leading independent data, voice and internet provider; supplying wholesale fibre optic, satellite and international carrier services to telecommunications operators in developing countries.
The Company owns and operates one of the largest fibre optic networks in Southern Africa, expected to exceed 8,500km by the end of 2011, with access to submarine cables for onward connection to Europe and the Far East.
Liquid Telecom also owns and operates one of the region’s largest satellite networks, and provides outsourced transaction switching and point of sale solutions to major international clients.
The market and shareholders are advised that this is a Category 3 Transaction and in accordance with the LuSE Listing Rules, requires publication of an announcement.
The market and shareholders will be kept fully informed about subsequent developments.
CONTACT:
Copperbelt Energy Corporation
Public Relations
Chama Nsabika Kalima
+260 211 261647
Investor Relations
Clara Mutati Musama
+260 211 261647
Liquid Telecommunications Holdings Limited
5th Floor, Ebene Mews
Cyber City, Ebene
Mauritius
Lusaka – 04 April 2011
SPONSORING BROKER
STOCKBROKERS ZAMBIA
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