Renounceable Rights Offer
Finalisation Announcement – the terms of the Rights Offer
Introduction
In compliance with the Listing Rules of the Lusaka Stock Exchange (“LuSE”) and further to the Declaration Announcement dated 27 December 2013, shareholders are advised that the relevant rights offer terms and documentation have been finalized and approved by the LuSE. Accordingly, CEC will now proceed with a renounceable rights offer (“Rights Offer”).
Salient terms of the Rights Offer
- Number of Existing Shares: 1,000,000,000
- Rights Offer Ratio: 5 new shares for every 8 existing shares held as at Record Date
- Number of New Shares: 625,000,000
- Record Date : 31 January 2014
- Price of New Shares: ZMW 0.62 per rights offer share
- Amount to be raised: ZMW 387,500,000 (three hundred and eighty seven million, five hundred thousand kwacha)
The gross proceeds of the Rights Offer are expected to amount to approximately ZMW387,500,000. The Rights Offer subscription price represents a discount of 19.5 percent and 9.5 percent to the share price and 30 day volume weighted average price of CEC shares, respectively, as at the close of trading on Thursday, 16 January 2014.
Salient dates and times
The salient dates and times pertaining to the Rights Offer are as follows:-
| Day | Date | Event |
| Monday | 27 January 2014 | CEC shares trade ex-rights |
| Monday | 27 January 2014 | Letters of Allocation (LAs) listed on the LuSE |
| Friday | 31 January 2014 | Last day to register for rights offer – the Record Date |
| Monday | 03 February 2014 | Rights Offer Opens & Rights Offer document posted to shareholders |
| Friday | 21 February 2014 | Last day for dealing in LAs on the LuSE |
| Wednesday | 26 February 2014 | Last day for postal acceptances of the Rights Offer |
| Friday | 28 February 2014 | Offer closes (14:00) – earliest date |
| Monday | 03 March 2014 | Results announcement – results of the Rights Offer |
| Monday | 03 March 2014 | New Rights Offer Shares listed on the LuSE |
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