The acquisition is expected to help facilitate the group's digital transformation strategy through an enhanced operating model and the benefit of 100% of cash flows from CEC Liquid Telecom and its retail arm, Hai Zambia.
Until now, CEC and Liquid Telecom were equal partners in the US$30 million joint-venture subsidiary since 2011.
CEC Liquid Telecom is a data and IP provider that provides wholesale capacity and terrestrial internet bandwidth.
CEC managing director Owen Silavwe said in a statement that CEC's decision to divest from the telecom space was motivated by recent development in the sector, which he said necessitated a review of its strategy regarding its investment in the sector.
"This is a venture whose birth and growth we have nurtured, witnessed and have 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."
Liquid Telecom Group CEO Nic Rudnick said by acquiring the remaining shares in the company, Liquid Telecom will be able to focus on growing its wholesale enterprise and retail offering across Zambia, which he said will result in improved customer service and the delivery of new products including cloud-based services such as Microsoft Office 365 and Asure Stack, which will ow be hosted locally.
Rudnick added that the company will also increase its investment in its fibre network in Zambia, and connect the country to its 'One Africa' broadband network.
"The acquisition of CEC Liquid Telecom represents another major milestone towards the delivery of Liquid Telecom's vision to build Africa's digital future. We have continued to expand the footprint of our network and broadened our award-winning product offering."
The Zambian operations will form a key part of Liquid Telecom's focus on the Southern African region, alongside Zimbabwe, Democratic Republic of Congo and Botswana.
Liquid Telecom Zambia will sit under the leadership of new regional CEO of Southern Africa Wellington Makamure.
