THE Copperbelt Energy Corporation Plc has sold its 50 per cent shareholding in CEC Liquid Telecommunication Limited to Pan-African Telecoms group, Liquid Telecommunication Holdings Limited (Liquid Telecom).
Until now, CEC and Liquid Telecom were equal partners in the joint venture subsidiary since 2011, according to a statement issued by CEC senior manager corporate communication Chama Nsabika.
At the time of forming the venture, CEC’s investment rationale in CEC Liquid Telecom was to facilitate the full commercialisation of CEC’s telecoms assets, ensuring adequate ring fencing of the telecoms operations from the power business.
“The model was based on leased infrastructure capacity, aligning well with the CEC power business model. CEC’s decision to divest from the telecoms space has been motivated by several recent developments in the telecoms sector, necessitating a review of its strategy vis-à-vis its investment in the sector,” according to Nsabika.
Commenting on the disposal of its stake, CEC managing director Owen Silavwe said “This is a venture whose birth and growth we have nurtured, witnessed and been a part of. Its value and service provision has grown immensely over the years and we are pleased that we can hand it over to people whose competence to continue with service delivery improvements, value creation and realisation for the business, going forward, is not in doubt. While this transaction provides an equity exit for CEC, we will continue to be involved with the company as an infrastructure provider. We are glad to have been a part of CEC Liquid Telecom’s innovative service offering under our part ownership and remain excited about its future.”
With this acquisition, according to the statement, Liquid Telecom now has full ownership of CEC Liquid Telecom and its retail arm, Hai Zambia.
“The CEC Liquid Telecom joint venture, formed by the two partners in 2011, has grown to become a market leader and has invested in the rollout of a fibre optic network across Zambia that, today, delivers some of the country’s and Africa’s fastest broadband speeds. CEC Liquid Telecom serves a range of wholesale, enterprise and retail customers and has launched the leading 4G LTE network in all 10 provinces of Zambia. The company also now offers Office 365, accesses through its leading-edge fibre network, to businesses of all sizes in Zambia,” according to CEC.