Econet Wireless Zimbabwe’s financial and insurance business, Cassava SmarTech will list on the Zimbabwe Stock Exchange on December 11 as it seeks to tap into the country’s growing digital technology space.
BY BUSINESS REPORTER
Shareholders of Econet, Zimbabwe’s biggest mobile operator with a market value of $5,6 billion as of yesterday, will meet later this month to approve the plan.
The demerging of Cassava will remove 39% of the mobile phone operator’s revenue, according to its most recent accounts.
“The ZSE (Zimbabwe Stock Exchange) has agreed, subject to the fulfilment of the listing requirements, to the listing of the entire issued ordinary share capital of Cassava SmarTech Zimbabwe Limited, comprising 3 679 300 707 ordinary shares of a nominal value of US$0,001 per share. The listing and the commencement of trade will take place with effect from December 11, 2018,” Econet said in a pre-listing statement last week.
The authorised share capital of Cassava would comprise 4,2 billion ordinary shares with a nominal value of $0,001 each and the issued share capital will comprise 3 679 300 707 ordinary shares with a nominal value of $0,001.
“All the shares of the company shall rank pari passu (equal) in all respects,” Econet said.
Demerging and listing of the technology company Cassava separately from Econet on the main bourse is expected to allow the group to focus on the growing digital service opportunities in Zimbabwe.
This growth will be focused on mobile and internet penetration, infrastructure, group synergies, payment platform, and brand recognition and acceptance seen as conducive to future growth.
Following the demerger from Econet, Econet Global Limited, the international business of the group will become the majority shareholder in Cassava with a 35,01%, with Econet holding a 20% interest.
Other shareholders will be Stanbic Nominees (Private) Limited (Nnr) holding 12,62%, Stanbic Nominees (Private) Limited (5,63%), Old Mutual Life Assurance Company of Zimbabwe Limited (5,22%), with the other shareholders holding the remaining (21,52%).
Although Cassava will operate separately and independently from Econet through the share ownership structure, the two will continue to enjoy and exploit synergies.
Econet said Cassava would leverage on Zimbabwe’s high mobile telecommunications penetration rate of 88%, and the company’s robust digital platforms “to deliver life-changing and impactful solutions across a full spectrum of smart tech services”.