Batoka Energy Holdings (Ireland) Ltd is set to make a mandatory offer of K526.2m (K0.6746 per share) to Copperbelt Energy Corp. minority shareholders after acquiring 40% of Zambia Energy Corp. (ZECL) as part of a reorganization of ZECL announced in a cautionary note in Q4 2013. The 40% was previously held by institutional and retail investors. Here’s a chart showing the owner-subsidiary relationships before this change:
Here’s a chart showing the owner-subsidiary relationships after the reorganization:
As a result of this transaction, the Securities and Exchange Commission of Zambia (SEC) advised that the internal reorganization of ZECL, according to regulation, triggered an obligation on Batoka Ireland to make a mandatory offer to CEC shareholders under the ‘Takeovers Rules’. On 25 March 2014, Batoka Ireland submitted a cash offer to the Board of directors of CEC to buy out minority shareholders (48% of CEC). Details of the rest of the terms can be found here.
According to Solo Check – an Irish website that does company searches, business information and credit reports – Batoka Energy Holdings (Ireland) Ltd was set up on 29th November 2013 in Dublin. The company’s current directors are Hanson Sindowe (CEC Executive Chairman), Michael Tarney (CEC MD – Corporate Development) and Michael Green.
CEC closed today unchanged at K0.70.
Trying to decipher this puzzle that is Zambia by using a variety of publicly available data (structured and unstructured) in conjunction with my own skill/experience. * * *