CEC’s Renounceable Rights Offer Explained
Existing substation: Arial view of High Tension yard at the 66/11kV Bancroft Main Substation
Copperbelt Energy Corporation PLC’s ‘Renounceable Rights Offer‘ to existing shareholders, which will enable the Company raise capital to fund specific expansion projects and strengthen its balance sheet, has opened and will run until February 28, 2014.
This option, a ‘Renounceable Rights Offer’ chosen by CEC means investors are able to either take up their rights in full, or partially, to purchase additional shares in the Company, choose not to take up their rights and instead opt to sell them on the open market, or in fact, choose not to do anything.
The courses of action open to shareholders with respect to the rights accruing to them in terms of the Rights Offer are explained below:
- Acceptance means a shareholder chooses to subscribe for all the Rights Offer shares they are entitled to;
- Renunciation refers to the option allowing a shareholder to sell all the rights to the Rights Offer shares being offered by trading them on the Lusaka Stock Exchange (LuSE);
- Splitting is the action taken by a shareholder who opts to subscribe in part for the Rights Offer shares and to sell the remaining rights by trading them on the LuSE;
- A shareholder who chooses to take none of the foregoing actions during the period of the Rights Offer waives their rights to any entitlement in respect of the new shares when the offer period closes.
A consequence of partially following one’s rights, renouncing or waiving them is dilution of shareholding; meaning that such a shareholder would, post the Rights Offer, own proportionately less shares than before.
A ‘non-renounceable’ rights issue, in comparison, does not allow investors to sell or transfer their rights – in other words, rights cannot be traded on the market. CEC’s renounceable entitlement provides more options for its shareholders to choose from.
Proceeds of the Rights Offer will enable CEC to invest in a number of identified growth opportunities within select countries in sub-Saharan Africa. The Company has undertaken critical feasibility work to develop robust business plans with respect to each opportunity.
Download Rights Offer circular
Read about Rights Offers
About Copperbelt Energy Corporation PLC
Copperbelt Energy Corporation PLC (CEC) is an independent power distribution and transmission business, with a control centre on the Copperbelt Province of Zambia.
CEC’s strategy is to: Grow and diversify its business by pursuing viable opportunities in the energy and telecommunication sectors; play a role in observing and shaping the present and future business environment for the benefit of the Company, its customers, and its suppliers; and develop strategic partnerships with technical and financial resources to realise a shared vision of energy infrastructure development in Zambia and surrounding territories.
CEC, a member of the Southern African Power Pool distributes power to the majority of mines operating on the Copperbelt province, the national utilities ZESCO Limited (ZESCO) and SNEL of the Democratic Republic of Congo (DRC).
The company’s assets comprise an emergency power generation capacity of 80MW, transmission and distribution network of 900 km of overhead power lines, 40 high voltage substations and electricity network carrying capacity in excess of 700MW. The company operates an interconnector with the DRC, through which power is wheeled to Zambia, Zimbabwe and South Africa.
CEC is also a wholesale broadband and Internet Service Provider (ISP) in Zambia through two joint ventures, Realtime Zambia (RTAA) and CEC Liquid.
For further information contact:
Mrs. Chama S Nsabika-Kalima
Corporate Communication
Tel: +260 211 261 647
Email: [email protected]
Website: www.cecinvestor.com
