CEC disposes of 50% CEC Liquid Telecom stake
The Copperbelt Energy Corporation Plc (CEC) has sold its 50% shareholding in CEC Liquid Telecommunication Limited (CEC Liquid Telecom) to pan-African telecoms group, Liquid Telecommunication Holdings Limited (Liquid Telecom). Until now, CEC and Liquid Telecom were equal partners in the joint venture subsidiary since 2011.
At the time of forming the venture, CEC’s investment rationale in CEC Liquid Telecom was to facilitate for the full commercialization of CEC’s telecoms assets, ensuring adequate ring-fencing of the telecoms operations from the power business. The model was based on leased infrastructure capacity, aligning well with the CEC power business model.
CEC’s decision to divest from the telecoms space has been motivated by several recent developments in the telecoms sector, necessitating a review of its strategy vis-à-vis its investment in the sector.
Commenting on the disposal of its 50% interest, CEC Managing Director, Owen Silavwe, said “This is a venture whose birth and growth we have nurtured, witnessed and been a part of. Its value and service provision has grown immensely over the years and we are pleased that we can hand it over to people whose competence to continue with service delivery improvements, value creation and realisation for the business, going forward, is not in doubt. While this transaction provides an equity exit for CEC, we will continue to be involved with the company as an infrastructure provider. We are glad to have been a part of CEC Liquid Telecom’s innovative service offering under our part ownership and remain excited about its future.”
With this acquisition, Liquid Telecom now has full ownership of CEC Liquid Telecom and its retail arm, Hai Zambia.
The CEC Liquid Telecom joint venture, formed by the two partners in 2011, has grown to become a market leader and has invested in the rollout of a fibre optic network across Zambia that, today, delivers some of the country’s and Africa’s fastest broadband speeds. CEC Liquid Telecom serves a range of wholesale, enterprise and retail customers and has launched the leading 4G LTE network in all 10 provinces of Zambia. The company also now offers Office 365, accesses through its leading-edge fibre network, to businesses of all sizes in Zambia.
ENDS
About CEC
The Copperbelt Energy Corporation Plc (“CEC”), is a Zambian incorporated and publicly traded power transmission, generation and distribution company; accounting for around 50% of national power consumption. CEC is a major developer of energy infrastructure in Africa and a leading international power trader in Southern Africa.
The Company owns and operates over 1,000 kilometres of high voltage transmission lines and 42 substations covering all towns in Zambia’s mineral-rich region of the Copperbelt, and owns the Zambian portion of the electricity interconnector with the Democratic Republic of Congo, which enables transportation of power within the Southern African region.
For further information, contact:
Chama S. Nsabika
Senior Manager Corporate Communication
+260 212 244914
+260 966 792922
[email protected]
