Econet Wireless Zimbabwe Limited has provided clarity on its decision to delist from the Zimbabwe Stock Exchange (ZSE) and the creation of Econet InfraCo, addressing shareholder concerns and queries.
The company is voluntarily delisting from the Zimbabwe Stock Exchange (ZSE) and subsequently listing Econet InfraCo, a new entity, on the Victoria Falls Stock Exchange (VFEX). The decision follows concerns over the company’s valuation, with Econet citing a persistent discount compared to regional peers.
Econet says it will continue to pay dividends every three months, subject to cash flow and solvency requirements. Econet InfraCo will also adopt a similar dividend policy.
Shareholders can trade their shares on the VFEX OTC platform, with liquidity conditions expected to remain unchanged.
The floor price will be reviewed periodically and adjusted upward in line with the company’s performance.
Econet will maintain its statutory and governance obligations, including publishing audited financial statements and holding shareholder meetings. Quarterly trade updates will be provided.
The board’s approval of new shareholders is for regulatory and compliance purposes, ensuring Know Your Customer (KYC) procedures are followed.
The company emphasized that no shareholder is being pushed out of the mobile business into Econet InfraCo; shareholders can continue to invest in Econet if they wish.
Econet Wireless Zimbabwe Limited reiterated that it remains committed to transparency and communication with its shareholders, ensuring that all concerns are addressed and obligations are met.
