CEC Africa seeks to delink from CEC Group

THE Copperbelt Energy Corporation Plc (CEC) intends to focus on its considerable investments and positive growth attained in Zambia and South Africa once CEC Africa separates from the CEC Group. According to the CEC shareholders summary update, the strategy for the business would be centred on growth that was integrated in the core business. “Following the proposed demerger, CEC Plc’s business will focus on its positive growth trajectory achieved through focused investments and growth opportunities, with a concentration on Zambia and Southern Africa. “On a regional basis and as a regional/international power trader, the business will look to nurturing the opportunity to grow its participation in power trading,” reads the update. CEC would also play a role in unlocking regional transmission infrastructure to facilitate power transmission and supplies in a rational approach; taking into account the appropriate risk allocation. The concentration for the CEC Africa business after the separation would be the stabilising of the operating assets, which would be achieved through continued operational improvements, and engaging in and contributing to the Nigerian power sector on regulatory and general industry issues. The business would also ensure that it has an optimal financing structure, with the right gearing and tenor, matching the operating cash flows. “This should be achieved by ensuring that appropriate loan tenors are achieved, which overall result in an increase in weighted average should loan life. “The purpose of this circular is to provide CEC Plc shareholders with the pertinent information regarding the proposed demerger and to convene a general meeting of CEC Plc shareholders in terms of the notice of general meeting forming part of this circular,” the update said. Following the proposed demerger, shareholders would hold one ordinary share in CEC Plc and one ordinary share in CEC Africa. However, CEC Africa would not immediately be listed on the LuSE or other securities exchange, but the shares would be quoted on the LuSE with a view to pursuing a listing in the future.

Categorized | Business, Home News

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