CEC Rights Offer to raise $70 million for crucial energy projects
Automated operation of power system: CEC power network Control Centre – Mimic Board and control desk workstations.
Zambia’s Copperbelt Energy Corporation Plc (CEC) has announced a three-week renounceable rights offer to raise $70 million (ZMW 387,500,000) equity capital required to undertake select capital projects and investments to help alleviate the country’s growing energy requirements. The announcement was made on the Lusaka Stock Exchange (LuSE) on 20 January 2014, and the rights offer opens to shareholders on 3 February, 2014.
CEC first announced its intention to raise funds in July 2013 and shareholders authorised the Board to proceed. In compliance with the LuSE listing rules and subsequent to the announcement on December 27, 2013, shareholders have been advised that the relevant offer terms and documentation have been finalised and approved. Results of the rights offer will be published on 3 March.
In the finalisation announcement, CEC has advised that about 625,000,000 new shares are to be issued at a price of KMW 0.62 per rights offer share.
The Group’s Managing Director for Corporate Development, Michael Tarney, has said that the power generation sector in Zambia requires crucial new investment in order to meet the country’s growing energy requirements and as the country’s major supplier of electricity to the mines, CEC will invest significantly in generation capacity over the coming years.
“This includes the re-finance aspect of a Bridge Facility taken out in August 2013 to acquire interests in the Nigerian power sector. Projects earmarked include development and upgrading of the CEC transmission network within Zambia; the Kabompo Hydropower project in Zambia’s Mwinilunga District, the 220kV Zambia-DRC Interconnector second line and the CEC Liquid fibre optic roll-out.“ He said.
“In addition to these priorities, a portion of the rights offer proceeds will be used to develop a number of renewable energy projects, including construction of a 1 MW bio-gasification project and development of a solar generation plant, both on the Copperbelt. Also on the plans is the completion of feasibility studies for the construction of a cascade of five hydro sites capable of generating 700MW on the Luapula River, which defines the border between Luapula Province of Zambia and Katanga Province of DRC.” Tarney added.
The main focus of investment for CEC going forward is the development of transmission, hydro generation and renewable energy in Zambia. The Company also continues to support the development of its telecommunications joint ventures, CEC Liquid and Realtime, in further network roll-out and provision of services based on fibre optic technology.
CEC supplies power to the majority of mines in Zambia, including Konkola Copper Mines Plc, Mopani Copper Mines Plc, NFC Africa Mining, CNMC Luanshya Copper Mines, Chambishi Metals Plc, Lubambe Copper Mines (formerly Konnoco) and Chibuluma Mines.
