Mozambique: Cahora Bassa shares floated on Monday

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Mozambique: Cahora Bassa shares floated on Monday

1:41 CAT | 17 Jun 2019

in file CoM

The public offering of 2.5% of the Cahora Bassa Hydroelectric scheme in Mozambique, starts on Monday with 680 million shares at a face value of three meticals (€0.04) each, the state-owned company said.

This is the first phase of an operation to sell off 7.5% of the company’s share capital.

The subscription is running until 12 July and is aimed at Mozambican citizens and companies.

The shares are expected to be admitted for trading on 22 July and there is no data as yet for the sale of the other 5% of the capital.

The operation is to be led by a Consortium composed of Banco Comercial e de Investimentos (BCI) and Banco BIG.

The hydro scheme has fixed contracted sales of 1,100 megawatt (MW) a year to South African electricity company Eskom, 300 to Eletricidade de Moçambique (EDM) and 50 to the Zambian state-owned power utility (Zeza).

Among recent highlights the board of directors presented was a 43% increase in revenue in 2018, following an agreement to increase prices for South Africa.

Built on the River Zambezi, in the Tete province in central Mozambique, the Cahora Bassa dam is the largest in Southern Africa. Work started in 1969, when Mozambique was still a Portuguese colony, but only came online in 1977.

Mozambique’s state owns 85% of the shares, the Portuguese power grid company (REN), 7.5% and the other 7.5% are treasury shares held by the company itself.

Source: Lusa