Econet to pay US$24m to exiting shareholders

Tapiwanashe Mangwiro

ECONET Wireless Zimbabwe will pay more than US$24 million in cash to investors who opted to exit the telecoms group ahead of its planned delisting from the Zimbabwe Stock Exchange (ZSE), marking a key step in the company’s restructuring exercise.

Zimbabwe’s largest mobile network operator said investors tendered 143,2 million shares under the exit offer that closed on March 9, representing 4,8 percent of the company’s issued share capital.

Under the terms of the offer, exiting shareholders will receive US$0,17 in cash and one share in Econet InfraCo, the infrastructure business the group plans to list on the Victoria Falls Stock Exchange (VFEX) later this month.

In total, the company will pay US$24,34 million in cash and issue 143,2 million Econet InfraCo shares valued at about US$47,25 million, according to a statement released by group company secretary Tatenda Ngowe.

“The exit offer consideration shall comprise US$0,17 in cash and one Econet InfraCo share for every EWZL share tendered,” Ms Ngowe said. “Accordingly, the company will pay an aggregate cash consideration of US$24 340 666 and allot 143 180 386 Econet InfraCo shares to participating shareholders.”The shares tendered under the offer will be cancelled once settlement is complete, the company said, resulting in a pro rata increase in the shareholding of remaining investors.