• Save
CEC investor open day presentation

Like this? Share it with your network

Share
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
969
On Slideshare
506
From Embeds
463
Number of Embeds
3

Actions

Shares
Downloads
0
Comments
0
Likes
0

Embeds 463

http://cecinvestor.com 461
https://twitter.com 1
http://translate.googleusercontent.com 1

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Private and confidential Copperbelt Energy Corporation CEC INVESTOR OPEN DAY Prepared by Standard Bank’s Corporate Finance Africa Division 07 February 2014
  • 2. Introduction 1 Background and purpose of document Copperbelt Energy Corporation Plc (“CEC” or the “Company”) seeks to raise the Zambian Kwacha (“ZMW”) equivalent of approximately USD70 million in equity capital by way of a renounceable rights offer (the “Rights Offer”) to existing CEC shareholders (“Shareholders”) – In compliance with the Listing Rules of the Lusaka Stock Exchange (“LuSE”) Standard Bank / Stanbic Bank Zambia is a long term supporter of CEC and has played an integral role in supporting CEC in its endeavours in Zambia and across the continent The Company has undertaken a comprehensive planning process in respect of the Rights Offer, supported by its team of advisers: – Financial Adviser and Bookrunner: The Standard Bank of South Africa Limited (“Standard Bank”) – Sponsoring Broker: Stockbrokers Zambia Limited (“Stockbrokers Zambia”) – Legal Adviser: Messrs Chibesakunda & Company (“Chibesakunda”) – Independent Reporting Accountant: PricewaterhouseCoopers Inc (“PwC”) The Circular to Shareholders and prelisting statement (collectively, the “Rights Offer Document”) has been approved, published and posted to respective shareholders from Monday, 3 February 2014 This presentation will cover the most salient details of the Rights Offer – If you are uncertain as to the process or action you should undertake, please engage your Broker or the Sponsoring Broker, Stockbrokers Zambia
  • 3. Shareholder commitment 2 Irrevocable undertakings to subscribe for 78.8% of the Rights Offer CEC has secured Irrevocable Letters of Undertaking from CEC’s largest shareholders: ZECI, ZCCM-IH and Aflife – Being approximately 78.8 % of the CEC Rights Offer Shares The irrevocable undertakings guarantee a successful equity raise for CEC Name of Shareholder Number of shares to be taken up Percentage of Rights Offer Zambia Energy Corporation 325,000,000 (Ireland) Limited 52.0% ZCCM-IH 125,000,000 20.0% Aflife 42,654,305 6.8% Total 492,654,305 78.8%
  • 4. Rights Offer term-sheet Issuer Copperbelt Energy Corporation PLC Exchange / BB Ticker / ISIN LuSE / CEC ZL / ZM0000000136 Nationality Zambia Industry Power & Infrastructure Offer structure Rights Offer to existing shareholders Rights Offer shares 625,000,000 Rights ratio 5 new shares for every 8 shares held on Record Date Base offer size ZMW 387.5m / USD70m Subscription price ZMW0.62 Listing location Lusaka Stock Exchange (LuSE) Discount to Theoretical Ex Rights Price (TERP) 9.5% Discount to spot (16 Jan) 19.5% Primary/secondary 100% primary shares Lock-up No lock-up Currency ZMW Bookrunner Standard Bank Timing January / February 2014 3
  • 5. Shareholder action 4 Four options available to shareholders 1. Subscribe for Rights Offer shares – Subscribe for Rights Offer shares by effecting payment before 28 February 2014 – Should you wish to apply for more shares, you are required to purchase LA options (rights) on the LuSE (ticker CECLA) - your Broker can facilitate this process 2. Sell all your rights – Should you wish not to subscribe for Rights Offer Shares you are advised to sell your LA options on the LuSE – Please engage your Broker, who can facilitate this process 3. Subscribe in part for Rights Offer Shares, and sell the balance – Please engage your Broker, who can facilitate this process 4. No action – Shareholders not selecting any of the foregoing options by Friday, 28 February 2014, the closing of the Offer Period, will have deemed to have selected none of the available options – Such rights pertaining to the Rights Offer will lapse – The Bookrunner will, on a best endeavours basis, procure purchasers for unsubscribed Shares in a rump placement process For more details please engage your Broker or the Sponsoring Broker, Stockbrokers Zambia
  • 6. Rights Offer timetable 5 Date Day Event 31 January 2014 Friday Last day to register for rights offer – the Record Date 03 February 2014 Monday Rights Offer opens (10:00) 21 February 2014 Friday Last day for dealing in LAs on the LuSE 26 February 2014 Wednesday Last day for postal acceptances of the Rights Offer 28 February 2014 Friday Offer closes (14:00) – earliest date 03 March 2014 Monday Results announcement – results of the Rights Offer 03 March 2014 Monday New Rights Offer Shares listed on the LuSE
  • 7. Financial effects of the Rights Offer 6 Pro forma financial effect Pro forma adjustments Before EPS Percentage change (%) After 0.056 -0.022 0.034 -39.3 0.92 -0.12 0.80 -13.0 Ordinary Shares in issue 1,000,000,000 625,000,000 1,625,000,000 +62.5 Weighted average number of ordinary Shares in issue 1,000,000,000 625,000,000 1,625,000,000 +62.5 NAV per share Notes and assumptions: • Published June 2013 information relates to the Group results. Published June 2013 information relates to the Company’s results extracted from the Group published results. • Net proceeds from the share issue of ZMW371,740,000 have been adjusted against current assets and equity. • As Per the LuSE’s Listings Rules the EPS calculation is based on the weighted average number of issued shares adjusted as though the Rights Offer had taken place at the beginning of the 6 month period.
  • 8. Disclaimer 7 This presentation is provided for information purposes only on the express understanding that the information contained herein will be regarded as strictly confidential. It is not to be delivered nor shall its contents be disclosed to anyone other than the entity to which it is being provided and its employees and shall not be reproduced or used, in whole or in part, for any purpose other than for the consideration of the financing or transaction described herein, without the prior written consent of a member of the Standard Bank Group. The information contained in this presentation does not purport to be complete and is subject to change. This is a commercial communication. This presentation may relate to derivative products and you should not deal in such products unless you understand the nature and extent of your exposure to risk. The presentation does not include a personal recommendation and does not constitute an offer, or the solicitation of an offer for the sale or purchase of any financial product, service, investment or security. The investments and strategies discussed here may not be suitable for all investors; if you have any doubts you should consult your investment advisor. The investments discussed may fluctuate in price or value Whilst every care has been taken in preparing this presentation, no member of the Standard Bank Group gives any representation, warranty or undertaking and accepts no responsibility or liability as to the accuracy, or completeness, of the information in this presentation Past performance is not indicative of future results. For the avoidance of doubt, our duties and responsibilities shall not include tax advisory, legal, regulatory accounting or other specialist or technical advice or services. You are to rely on your own independent appraisal of and investigations into all matters and things contemplated by this presentation. By accepting this presentation, you agree to be bound by the foregoing limitations. Kindly note that this presentation does not represent an offer of funding since any facility to be granted in terms of this presentation would be subject to the Standard Band Group obtaining the requisite internal and external approvals. Copyright 2010 Standard Bank Group. All rights reserved. UK Residents This presentation is not intended for the use of retail clients and must not be acted on or relied on by persons who are retail clients. Any investment or investment activity to which this presentation relates is only available to persons other than retail clients and will be engaged in only with such persons. Standard Bank Plc (SB Plc) is authorised and regulated by the Financial Services Authority (FSA), entered in the FSA’s register (register number 124823) and has approved this presentation for distribution in the UK only to persons other than retail clients. Persons into whose possession this presentation comes are required by SB Plc to inform themselves about and to observe these restrictions. Telephone calls may be recorded for quality and regulatory purposes. Standard Bank Plc, 20 Gresham Street, London, EC2V 7JE. South African Residents The Standard Bank of South Africa Limited (Reg.No.1962/000738/06) is regulated by the South African Reserve Bank and is an Authorised Financial Services Provider and Credit Provider. United States Residents In the US, Standard Bank Plc is acting through its agents, Standard Americas, Inc. and Standard New York Securities, Inc. Both are affiliates of Standard Bank Plc. Standard Americas, Inc is registered as a commodity trading advisor and a commodity pool operator with the NFA. Standard New York Securities, Inc is a member of FINRA and SIPC. Neither are banks, regulated by the United States Federal Reserve Board, nor insured by the FDIC. Hong Kong Residents Standard Bank Asia Limited is a fully licensed bank under the Banking Ordinance and is a registered institution under the Securities and Futures Ordinance in Hong Kong. Standard Securities Asia Limited is a licensed corporation with the Securities and Futures Commission. Any investments and services contained or referred to in this presentation may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about such investments or investment services. Dubai Residents Standard Bank Plc, Dubai Branch, is regulated by the Dubai Financial Services Authority (‘DFSA) (register number F000028). Within the Dubai International Financial Centre, (‘DIFC’) the financial products or services to which this marketing material relates will only be made available to Professional Clients, including a Market Counterparty, who meet the regulatory criteria of being a Client. Turkey Residents Standard Unlu Menkul Degerler A.S. and Standard Unlu Portfoy Yonetimi A.S. are regulated by the Turkish Capital Markets Board “CMB”). According to CMB’s legislation, the information, comments and recommendations contained in this presentation are not investment advisory services. Investment advisory services are provided under an investment advisory agreement between a brokerage house, a portfolio management company, a bank that does not accept deposits or other capital markets professionals and the client. The comments and recommendations contained in this presentation are based on the personal opinions of the authors. These opinions may not be appropriate for your financial situation and risk and return preferences. For that reason, investment decisions relying solely on the information contained in this presentation may not meet your expectations.