from MARCUS MUSHONGA in Harare, Zimbabwe
Zimbabwe Bureau
HARARE, (CAJ News) – ECONET Wireless is to delist from the Zimbabwe Stock Exchange (ZSE), where it earlier in December said its share price was undervalued.
The planned voluntary delisting, announced by the Board of Directors, is pursuant to the cautionary announcement dated December 3.
Tatenda Ngowe, Group Company Secretary, in an update on Wednesday, stated the company would seek shareholder approval to voluntarily delist from the stock exchange in terms of Section 11.5 of the ZSE Listings Requirements.
Prior to the delisting becoming effective, the company will extend a voluntary exit offer to eligible shareholders, enabling them to realise value for their investment should they not wish to remain invested in an unlisted environment.
“The exit offer will be financed partly in cash and partly in shares in the company’s infrastructure subsidiary as detailed below,” Ngowe said.
To unlock value for its shareholders, the Company has established Econet Infrastructure Company Limited (“Econet InfraCo”), an entity that will hold the company’s real estate, towers and power assets.
Econet intends to list the shares of Econet InfraCo on the Victoria Falls Stock Exchange (VFEX) by way of introduction.
A subsidiary of the ZSE established in 2020, it trades in the United States dollar.
Ngowe explained unlike the mobile network operator business in Zimbabwe, infrastructure assets represent a different class of investment, one that is better understood and valued within dollar-based property and infrastructure markets.
“It is the board’s view that the VFEX provides an appropriate platform for recognising the long-term value of Econet InfraCo.”
Econet has over 16 million customers, with a market share of over 72 percent.
– CAJ News