Online Reporter
Nqobile Bhebhe, Zimpapers Business Hub
ECONET Wireless Zimbabwe (EWZ) has informed shareholders that its board of directors has resolved to pursue a voluntary delisting from the Official List of the Zimbabwe Stock Exchange (ZSE), citing concerns over undervaluation on the domestic market.
Following the delisting, Econet will establish a separate infrastructure entity, Econet Infrastructure Company Limited (Econet InfraCo), which will be listed on the US dollar-denominated Victoria Falls Stock Exchange (VFex).
This move marks a significant corporate restructuring by Zimbabwe’s largest telecommunications provider.
The decision follows a cautionary statement issued on December 3, in which Econet indicated it was exploring strategic options to unlock shareholder value, enhance long-term competitiveness, and improve access to capital. The company said its ZSE share price does not accurately reflect the intrinsic value of its assets and operations. Econet’s current market capitalisation stands at ZiG 19,3 billion (US$689 million).
Econet was listed on the ZSE on September 17, 1998, just three months after commencing operations, and has since become a dominant player in Zimbabwe’s ICT sector and equities market.
In a notice on Tuesday, Econet said it has traded at a significant discount compared to regional telecommunications peers, which typically trade at six to eight times EV/EBITDA. The company noted that many African operators have already separated and monetised their tower infrastructure, while Econet has continued to own its towers and passive assets.
These assets will now be transferred to Econet InfraCo, which will hold the group’s real estate, towers and power infrastructure. The new entity will be listed on VFex by way of introduction.
“Further to the cautionary announcement dated December 3, 2025, shareholders are advised that the board of directors of Econet Wireless Zimbabwe Limited has resolved to pursue a voluntary delisting of the Company from the Official List of the Zimbabwe Stock Exchange,” the notice read.
Econet will seek shareholder approval to delist in terms of Section 11.5 of the ZSE Listings Requirements. Before the delisting becomes effective, the company will extend a voluntary exit offer to eligible shareholders, enabling them to realise value 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 Econet InfraCo.
As part of its value-unlocking strategy, Econet said the creation of Econet InfraCo aligns with global best practice in the telecommunications sector.
“The creation of Econet InfraCo aligns with international best practice, whereby mobile network operators separate passive infrastructure into dedicated infrastructure companies (‘TowerCos’). This approach enables clearer visibility of asset values, focused capital allocation, and a distinct operational strategy for infrastructure deployment and management,” the company said.
Econet will retain 70 percent of Econet InfraCo shares, while up to 30 percent will be allocated towards settling the exit offer for shareholders who opt out. An independent valuation expert will determine the share valuation to ensure fairness and regulatory compliance.
The company said VFEX offers a more suitable platform for infrastructure and property-related investments, citing higher Price-to-Earnings multiples for similar assets on the exchange.
“Unlike the mobile network operator business in Zimbabwe, infrastructure assets represent a different class of investment, one that is better understood and valued within USD-based property and infrastructure markets,” Econet said.
Meanwhile, another ZSE-listed company, National Tyre Services Limited (NTS), has also announced plans to voluntarily terminate its listing with effect from December 31, 2025. The ZSE confirmed that permission to delist NTS was granted by the Securities and Exchange Commission of Zimbabwe.
The ZSE has already witnessed several delistings this year, including Old Mutual’s Top Ten Exchange Traded Fund in January, Khayah Cement Limited in April, and Truworths in July.
Globally, major telecom operators have adopted similar strategies to unlock value. Bharti Airtel hived off its tower business into Bharti Infratel (now Indus Towers), China Tower consolidated assets of China’s major operators and listed in Hong Kong, while Deutsche Telekom sold a 51 percent stake in its tower unit GD Towers to infrastructure investors DigitalBridge and Brookfield in 2022.
