Shareholders are referred to the cautionary announcement dated December 15 2021, issued by the CEC Africa Investments Limited (“CECA” or the “Company”) informing the market of the developments in Nigeria in relation to the purported takeover of Abuja Electricity Distribution Plc (“AEDC”) by the Bureau of Public Enterprise (“BPE”).
Shareholders are aware that in December 2021, the Bureau of Public Enterprise (“BPE”) which holds shares in AEDC, purported to appoint an interim Board of Directors and management team to stabilize the operations of AEDC that were being affected by the dispute between the shareholders of KANN Utility Limited (“KANN”), a subsidiary of CEC Africa Investments Limited and holder of 60% shares in AEDC.
In response to the alleged takeover of the operations of AEDC, KANN instituted a suit against the BPE and other government agencies seeking court-ordered restraint against interference with the operations at AEDC. Shareholders will recall that the parties were unable to reach an amicable out-of-court settlement as directed by the Court.
Shareholders will also recall that two applications for joinder which would have frustrated the KANN suit were dismissed by the Court in June 2025 and a date was set down for hearing of all pending applications filed by parties. However, the trial Court was unable to sit on 10th June 2026, the date for hearing the applications, as the trial judge was indisposed.
As the Court’s annual recess commences in July, the matter has further been adjourned to 28th September 2026 for hearing of all pending applications.
ARBITRATION
Meanwhile CECA/KANN has decided to explore the arbitration option pursuant to the Arbitration Clauses in the Share Sales Agreement and the Shareholders Agreement executed by and between KANN, BPE, AEDC and Ministry of Finance Incorporated on the 21st February 2013 and 21st August 2013 respectively.
Both Agreements have dispute resolution clauses which state that all disputes between parties shall be referred to Arbitration for settlement. The seat of arbitration is London, England.
Pursuant to the Performance Agreement dated 21st August 2013, KANN gave BPE Notice of Dispute which was followed by a formal Notice of Arbitration served on BPE and Ministry of Finance. KANN in the served Notice of Arbitration asked for the following reliefs:
- An order directing BPE to pay off all the debts due to UBA from KANN less certain deductions within one year.
- An order directing BPE to service the debt until it pays it off.
- An order directing BPE to procure the release of all its security from UBA.
- Payment by BPE of the sum of $250,000,000 (Two Hundred and Fifty Million United States Dollars) being the Put Option Equity Price.
- Compound interest on the said sum of $250,000,000 (Two Hundred and Fifty Million Dollars) from 23 January 2026 when the Put Option transaction ought to have concluded till full and final satisfaction of any award made by the tribunal.
- Such special or general damages as the Honourable Tribunal deems fit to award KANN for breach of contract or breach of other duty on the part of BPE and Ministry of Finance Incorporated.
- Cost of Arbitration.
The stage has now been set for the Arbitration as both KANN and the BPE have pursuant to the provisions of the Performance Agreement, appointed an Arbitrator each. However, the two Arbitrators appointed by the parties were unable to agree on the appointment of the Presiding Arbitrator. Consequent upon the disagreement and pursuant to the Performance Agreement, KANN formally applied to London Court of International Arbitration (LCIA) requesting the Court to appoint the Presiding Arbitrator for the parties. The parties are presently waiting for the appointment of the Presiding Arbitrator by LCIA having paid the prescribed fees for that purpose.
The hearing of the Arbitral proceeding will commence soon, and CECA will inform the public of further developments in both the legal suit and the arbitration as they become known.
Accordingly, shareholders are advised to continue to exercise caution when dealing in the company’s shares until a full announcement is made.
Clara Mvulafor CEC Africa Investments Limited
Issued in Lusaka, Zambia on Tuesday, June 30, 2026
First Issued on December 15 2021
