Renounceable Rights Offer Declaration Announcement
Introduction
In compliance with the Listing Rules of the Lusaka Stock Exchange (LuSE), shareholders are referred to the announcement of 10 July, 2013 in which CEC declared the intention to issue new shares to raise fresh capital by way of a renounceable rights offer (“the Rights Offer”) in terms of resolutions of shareholders passed at an Extraordinary General Meeting (EGM) held on 26 July, 2013.
The timetable of the Renounceable Rights Offer has now been finalized whereby
- Following shareholder resolutions passed at the EGM of 26 July 2013, the Directors have now set the capital raise under the Rights Offer at the Kwacha equivalent of around USD 70 million.
- New shares (“Rights Offer Shares”) will be offered to CEC shareholders at a subscription price to be announced in the Finalisation Announcement. The Right Offer Shares will, upon allotment and issue, rank pari passu in all respects with the existing shares in issue.
Purpose of Rights Offer
The proceeds of the Rights Offer will be applied (i) to undertake a number of capital projects and investments and (ii) to re-finance part of a bridge facility taken out in August 2013 to acquire interests in the Nigerian power sector. The main focus of investment for CEC going forward will be the development of transmission, hydro generation and renewable energy in Zambia. CEC will also support the development of its joint ventures in telecommunications, CEC Liquid and Realtime, to further the network roll-out and provision of services based on fibre optic technology.
Declaration of Rights Offer Record Date
Shareholders are advised that the last day to qualify for the renounceable rights (the Record Date) is Friday, 31 January 2014. Shareholders are further advised that the LuSE operates a 3 day rolling settlement cycle (T+3). As such, the last day for trading in CEC shares to qualify to participate in the Rights Offer is Friday, 24 January 2014. Shareholders who will qualify to participate shall be entitled to purchase the new shares in the Company on terms and conditions to be specified in the Finalisation Announcement.
Finalisation Announcement
The Finalisation Announcement explaining the salient terms of the Rights Offer will be published in the press on Friday, 17 January 2014.
Posting of Rights Offer Circular
A Circular to shareholders giving full details of the Rights Offer will be mailed to shareholders on or about Monday, 20 January 2014.
Lusaka
Date: 27 December 2013
