CEC | Notice of EGM – Proposed renounceable rights offer
Announcement – Notice of Extraordinary General Meeting to approve the restructure of the ordinary share capital for purposes of a proposed Renounceable Rights Offer.
Introduction
In compliance with the LuSE Listing Rules, CEC today announces that it seeks to issue new shares to raise up to the Zambian Kwacha equivalent of USD50m (Fifty Million United States Dollars only) by way of a renounceable rights offer (“the Renounceable Rights Offer”).
Notice of General Meeting
At a board meeting held on Thursday, 30 May, 2013 at CEC’s Head Office, the board of directors of CEC (“the Board”) resolved to conduct a rights offer in order to raise a sum of the Zambian Kwacha equivalent of USD50m. The proceeds of the Renounceable Rights Offer will support the expansion of operations within Zambia and the rest of Africa. In addition, CEC seeks to benefit from reduced overall debt levels by strengthening the Company’s overall financial position.
In order to proceed with the Renounceable Rights Offer, the Company is required to restructure its share capital. Accordingly, the Board hereby announces that it will convene an Extraordinary General Meeting to be held on Friday 26th July, 2013 commencing at 09: 30 hours to be held at the Radisson Blu Hotel located at Plot No.19029 along Great East Road in order for Shareholders to vote on the following resolutions, which propose to:
- change the share capital to stock and reconversion to shares;
- authorise the capitalisation of reserves;
- authorise an increase in the Company`s authorised share capital;
- amend the Articles of Association of the Company to effect such resolutions above to take account of the conversion of and increase in the authorised share capital of the Company; and
- place the authorised but unissued shares under the control of the Board for the specific purpose of implementing the Rights Offer.
Further Announcements
Shareholders are advised that the last day for registration for the rights, further salient dates and final terms of the Renounceable Rights Offer will be announced in due course.
10 July 2013
Lusaka – Zambia
