Renounceable Rights Offer Results Announcement
Background
Shareholders are referred to the announcements by CEC first issued on 10 July 2013 and subsequently updated since then and more recently on 27 December 2013 (the “Declaration Announcement”) and on 17 January 2014 (the “Finalisation Announcement”) and the Circular to shareholders dated 03 February 2014 detailing the terms of the CEC Renounceable Rights Offer.
The primary purpose of the CEC Rights Offer was to raise a total of ZMW 387.5 million via issuance of 625 million new shares at an offer price of ZMW 0.62 per share on the basis of 5 new shares for every 8 shares held as at record date on 31 January 2014.
The Rights Offer opened on 03 February 2014 and the close date was extended from 28 February 2014 to 07 March 2014 following delays with the postal delivery of the Rights Offer Circular document to shareholders. The extension was, therefore, necessitated by the need to ensure that all shareholders were given sufficient time and opportunity to follow their rights and subscribe for the shares that they were entitled to under the Rights Offer.
Results
The results of the CEC Rights Offer are summarised on the table below:
| Shareholding group | Shares held before Rights Offer | % Shareholding before Rights Offer |
Shares held after Rights Offer |
% Shareholding after Rights Offer |
| ZAMEN | 520,000,000 | 52.00 | 845,000,000 | 52.00 |
| ZCCM-IH | 200,000,000 | 20.00 | 325,000,000 | 20.00 |
| AFLIFE | 72,173,864 | 7.22 | 117,282,529 | 7.22 |
| INSTITUTIONAL | 89,312,146 | 8.93 | 234,730,015 | 14.44 |
| RETAIL | 118,513,990 | 11.85 | 77,627,811 | 4.78 |
| RUMP SHARES | – | – | 25,360,242 | 1.56 |
| TOTAL | 1,000,000,000 | 100.00 | 1,625,000,597 | 100.00 |
Review of results
The Board and Management of CEC are pleased to note that the Rights Offer has been strongly supported by the shareholders of the Company and that the majority of shareholders opted to take up their entitlement of new shares with 95.95% of the offer subscribed for.
It is also noted that local institutional investment was particularly strong and the shareholding has increased in this regard since the institutions actively bought additional rights on the LuSE secondary market during the offer period.
Of the 625,000,597 shares offered, a total of 25,360,242 shares, or 4.05 % were not taken up by existing shareholders.
Rump placement
CEC will place the entire rump of 25,360,242 shares, representing 1.56 % of the Company’s enlarged ordinary share capital at its sole discretion, as stated in the Rights Offer Circular document.
18 March 2014
Lusaka – Zambia
