CEC Africa investments issues first loan demand cautionary statement

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  • Loan of principal and interest amounting to $15 427 263
  • BP Investments acquired 35% stake in CEC Africa

Harare – Pan African company, CEC Africa Investments Limited (CECA) has issued a first cautionary announcement on loan demand that the company entered on 20 November 2014.

The company has a mandate to develop, finance and operate power projects across Sub-Saharan Africa.

In an announcement the company said, “In compliance with the disclosure requirements under the Act, CECA hereby notifies its shareholders and the market that, the Company received a letter of demand from Zambia Energy Corporation (Ireland) Limited (“ZECI”) on 3 July 2020 for repayment of a loan of principal and interest amounting to USD 15,427,263 entered into by the Company on 20 November 2014. On 10 July 2020, the Company was served with court process documents indicating that ZECI would seek to recover the debt through the courts in Mauritius.”

This development relating to the Company, and its impact are currently being determined and may have a material effect on the price of the Company’s shares.

Accordingly, shareholders are advised to exercise caution when dealing in the Company’s shares until a full announcement is made.

In mid-June, BP Investments Limited (“BPIL”) acquired a total number of 562,888,648 ordinary shares, representing a 35% shareholding in CECA which is a significant acquisition that requires a market announcement.

BPIL is a private company registered in Nigeria on 14th June 1999 for the purpose of engaging in commodity trade, investments, the provision of management and advisory services.

It has successfully made several investments in companies, resulting in their significant shareholdings in several companies in various sectors including electricity generation and distribution.

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