Econet Wireless Zimbabwe to Delist from Zimbabwe Stock Exchange

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Econet Wireless Zimbabwe has announced plans to voluntarily delist from the Zimbabwe Stock Exchange (ZSE) as part of a strategy to unlock shareholder value and list its core infrastructure assets on the United States dollar-denominated Victoria Falls Stock Exchange (VFEX).

The telecommunications group revealed in a cautionary announcement that it will separate its passive infrastructure, including real estate, towers, and power assets, into a new subsidiary named Econet Infrastructure Company Limited (Econet InfraCo).

Econet’s board explained that the delisting decision was motivated by the company’s significant valuation discount compared to its regional peers. Other African mobile network operators that have unbundled their passive infrastructure trade at estimated multiples of six to eight times Enterprise Value to Earnings Before Interest, Taxes, Depreciation, and Amortisation (EV/EBITDA).

“This approach enables clearer visibility of asset values, focused capital allocation and a distinct operational strategy for infrastructure deployment and management,” Econet stated.

The planned listing of Econet InfraCo on the VFEX through introduction is a central feature of the value creation strategy. The board highlighted that infrastructure assets tend to be better understood and more favourably valued within US dollar-based property and infrastructure markets, citing the higher price-to-earnings multiples of firms listed on the VFEX.

Before the delisting takes effect, Econet will offer a voluntary exit to shareholders who do not wish to remain invested in an unlisted company. The exit offer will be settled partly in cash and partly through shares in the newly established Econet InfraCo, with up to 30 percent of Econet InfraCo’s issued shares allocated for this purpose. The company will retain the remaining 70 percent.

An independent valuation expert will determine the share value of Econet InfraCo to ensure fairness, transparency, and compliance with regulations.

The proposed delisting requires final shareholder approval as stipulated by listing rules.

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