By MAIMBOLWA MULIKELELA –
THE Copperbelt Energy Corporation (CEC) will issue new shares to raise up to K387, 500,000 by way of a renounceable rights offer.
According to a statement issued by Stockbrokers Zambia, the board of directors of CEC resolved to conduct a rights offer in order to raise K388 million.
The proceeds of the Rights Offer are expected to amount to about K387, 500,000, adding that the subscription price represents a discount of 19.5 per cent and 9.5 per cent to the share price respectively.
“In compliance with the Lusaka Stock Exchange (LuSE) listing rules and further to the Declaration Announcement dated December 27, 2013, shareholders are advised that the relevant rights offer terms and documentation have been finalised and approved by LuSE,” the statement said.
Accordingly, CEC will now proceed with a Renounceable Rights Offer to raise up to
K387, 500,000.
The statement said about 625,000,000 new shares would be issued at a price of K 0.62 per rights offer share.
Further, because of its nature, the pro-forma financial information before and after the Rights Offer may not fairly present the Company’s financial position subsequent to the Rights Offer.
The statement said the pro-forma financial effects have been prepared in accordance with the Listing Requirements and the Guide on Pro-Forma Financial Information issued by The Zambian Institute of Chartered Accountants.
