Shareholders are referred to the “Divestment – CEC Liquid Telecommunication Limited” announcement issued via the Stock Exchange News Service (“SENS”) on 23rd May 2018 in which Shareholders were advised that Copperbelt Energy Corporation Plc (“CEC” or “the Company”) had entered into a Sale and Purchase Agreement (the “Agreement”) with Liquid Telecommunications Holdings Limited (“Liquid”) for the sale of CEC’s 50% shareholding in CEC Liquid Telecommunication Limited (“CEC Liquid Telecom”) (the “Transaction”).
CEC is pleased to announce that it has completed the sale of its 50% shareholding in CEC Liquid Telecom to Liquid and all the conditions precedent (“CPs”) to which the Transaction was subject have been fulfilled.
- The approval of the sale of the Sale Shares and matters ancillary thereto by the COMESA Competition Commission;
- The approval of the sale of the Sale Shares and matters ancillary thereto (including the proposed changes to the board of directors of CEC Liquid Telecom by the Zambia Information and Communications Technology Authority;
- CEC Liquid Telecom having obtained the consent of Stanbic Bank Zambia Limited to the sale of the Sale Shares and matters ancillary thereto (including the termination of the Joint Venture Agreement);
- Discharge of the CEC Guarantee in a form satisfactory to CEC;
- Liquid having obtained the consent of its lenders to the acquisition of the Sale Shares and matters ancillary thereto; and
- CEC having obtained the consent of its lenders to the sale of the Sale Shares and matters ancillary thereto.
Following fulfilment of all the conditions precedent, the Transaction has reached completion, triggering the payment of 10% of the agreed purchase price (initial instalment payable at completion). The deferred consideration, backed by a bank guarantee, is payable no later than 28th February 2019.
The realised proceeds from the Transaction will be used to fund the growth and expansion of CEC’s core business in line with its strategy of divesting out of non-core operations and focusing on the core business of generation, transmission, distribution and supply of electricity.
By Order of the Board
Mrs. Julia C Z Chaila
Issued in Lusaka, 16 October 2018
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First Issued on Wednesday, 15th August 2018