CEC up for sale to new investors
Published on 23rd July 2018
The Zambia Information and Communications Technology Authority (ZICTA) has approved a change of control of CEC Telecom, a subsidiary of the Copperbelt Energy Corporation (CEC).
Owners of the privately-owned power utility company CEC have decided to sell the company and its subsidiary (CEC Telecom) to new investors at a cost of K3, 709 billion (approximately .
CEC Telecom and Liquid Telecom Group have established a joint venture called CEC Liquid Telecom, a data and IP provider that provides wholesale capacity and terrestrial internet bandwidth.
According to a notice by the Lusaka Stock Exchange, the consent by ZICTA to change control of the company is in line with the country's Information and Communication Technology Act No. 15 of 2009 and as required under CEC's network license condition.
In compliance with local law, Zambia's Minister of Finance Margaret Mwanakatwe is noted as the holder of the golden share in CEC on behalf of government. This shareholder has the power to veto or sanction any changes to the company's charter or ownership.
The Commonwealth Development Corporation (CDC) Group of UK had planned to acquire CEC, but this fell through because the CDC failed to offer in full as at 17:00 CAT on 17 July 2018, according to a notice issued by the Stock Exchange.
CEC company secretary Julia Chaila confirmed plans to sale the company to new investors.
"CEC has entered into a Sale Purchase Agreement with Liquid Telecommunications Holding Limited for the sale of CEC's 50% shareholding in CEC Liquid Telecom and payments of all amounts owed by CEC Telecom to CEC in its jointly owned subsidiary," said Chaila.
When CEC Telecom entered into the joint venture with Liquid Telecom Group in 2011, each partner had an equal stake in the US$30 million CEC Liquid Telecom.