Online Reporter
Nqobile Bhebhe
Zimpapers Business Hub
Econet Wireless Zimbabwe has further informed shareholders that its board of directors has decided to pursue a voluntary delisting from the Official List of the Zimbabwe Stock Exchange amid concerns about undervaluation on the domestic exchange.
Upon delisting from ZSE, Econet will establish a separate infrastructure entity, Econet Infrastructure Company Limited (Econet InfraCo), which will be listed on the US dollar Victoria Falls Stock Exchange.
This move is a significant corporate restructuring by the country’s largest telecommunications provider. It follows a cautionary announcement issued on December 3, in which Econet indicated that it was exploring strategic options to unlock shareholder value, enhance long-term competitiveness and improve access to capital.
This comes after the company cited concerns that its ZSE share price did not accurately reflect the intrinsic value of its assets and operations. The telecoms firm’s current market price stands at ZiG19,3 billion (US$689 million.
Econet was listed on the ZSE on September 17, 1998, just three months after starting operations, and has remained on Zimbabwe’s premier securities exchange since then.
Over the years, it has become the leader in the country’s information and communications technology (ICT) sector and a major player in the local equities market.
In a notice yesterday, Econet said it had, over the past several years, traded at a significant discount to comparable telecommunications companies across Africa, which trade at six and eight times EV/EBITDA.
The company noted that many of its regional peers have already separated and realised value from their tower infrastructure, while Econet has continued to own its towers and other passive infrastructure.
That infrastructure has now been placed under a newly established subsidiary, Econet InfraCo, which will hold the group’s real estate, towers and power assets and is set to be listed on the VFEX.
“Further to the cautionary announcement dated December 3, 2025 (“the first cautionary announcement shareholders are advised that the board of directors of Econet Wireless Zimbabwe Limited (the Company) has resolved to pursue a voluntary delisting of the Company from the Official List of the Zimbabwe Stock Exchange (ZSE).”
Econet said it will seek shareholder approval to voluntarily 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 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 part of the value-unlocking strategy, Econet said the creation of Econet InfraCo is aligned 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 a dedicated infrastructure company (“Tower Cos”).
“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 the issued shares in Econet InfraCo, while up to 30 percent will be allocated towards settling the exit offer for shareholders who choose not to remain invested in the company following the delisting.
An independent valuation expert will determine the valuation of Econet InfraCo’s shares to ensure fairness, transparency and regulatory compliance.
The company said it intended to list Econet InfraCo on the VFEX by way of introduction, citing the exchange’s suitability for infrastructure and property-related investments.
“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.
“This is demonstrated by the higher Price-to-Earnings multiples at which listed real estate and infrastructure companies trade on the VFEX. It is the Board’s view that the VFEX provides an appropriate platform for recognising the long-term value of Econet InfraCo.”
Meanwhile, another ZSE-listed company, National Tyre Services Limited (NTS), has also announced plans to delist through a voluntary termination, with effect from December 31, 2025.
“The shareholders of NTS met on 19 November 2025 and passed the resolution for the voluntary termination of its listing on the ZSE in accordance with Section 11 of the ZSE Listing Requirements.
“As required by Section 64 (1) (a)(i) of the Securities and Exchange Act [Cap24.25], the ZSE sought and was granted permission by the Securities and Exchange Commission of Zimbabwe (“SECZ”) to delist NTS from the ZSE’s official list. In terms of Section 15 (d) of the ZSE Listing Requirements, holders of NTS securities are hereby advised that the securities can no longer be traded on the ZSE with effect from 31 December 2025.”
The ZSE has already witnessed several delistings this year, including Old Mutual’s Top Ten Exchange Traded Funds in January, Khayah Cement Limited in April, and Truworths in July.
Several major telecom companies globally have either listed or separated their infrastructure units to unlock value, attract external investment, and focus on core services.
Bharti Airtel hived off its tower business into an independent entity called Bharti Infratel (now merged to form Indus Towers).
China Tower was established to manage the tower assets of China’s major telecom operators (China Mobile, China Unicom, and China Telecom) and is listed on the Hong Kong stock exchange.
Deutsche Telekom sold a majority 51 percent stake in its tower unit, GD Towers, to infrastructure investors DigitalBridge and Brookfield in 2022.
