HARARE, Mar. 13 (NewsDay Live) – Econet Wireless Zimbabwe (Econet) will pay out about US$24,34 million in cash to shareholders who accepted its exit offer ahead of the company’s planned Zimbabwe Stock Exchange delisting on March 31, after investors tendered 143,18 million shares.
The exit offer, which closed on March 9, attracted valid acceptances for 143,18 million shares, representing about 4,785% of its issued share capital. These shares will be cancelled once settlement is completed, resulting in a pro rata increase in the percentage shareholding of remaining investors.
Participating shareholders will also receive 143,18 million Econet Infrastructure Company Limited (InfraCo) shares valued at about US$47,25 million, as the company restructures its operations ahead of the InfraCo’s Victoria Falls Stock Exchange (VFEX) listing, also on March 31.
The exit offer had involved an indivisible consideration of US$0,50 per share, comprising US$0,17 in cash and one InfraCo share valued at US$0,33.
“At the close of the exit offer period, the company had received valid acceptances of 143 180 386 shares, representing approximately 4,785% of the issued share capital of the company,” Econet said in a statement.
“These shares will be cancelled as soon as they are paid, and a share redemption reserve fund shall be created in accordance with the provisions of the Companies and Other Business Entities Act.
“The reduction in the number of issued shares and the corresponding increase in the number of unissued shares will result in a pro rata increase in the percentage shareholding of remaining shareholders.”
Econet said the exit offer consideration comprised US$0,17 in cash and one Econet InfraCo share for every one Econet share tendered.
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“Accordingly, the company will pay an aggregate cash consideration of US$24 340 666 and allot 143 180 386 Econet InfraCo shares, valued at US$47 249 527, to participating shareholders, net of any applicable withholding taxes,” Econet said.
Following this exit offer, Econet is set to become the majority shareholder of Infraco, holding 95,215% of the issued share capital.
“EWZL (Econet) currently holds 2 000 shares in Econet InfraCo, representing 100% of the issued share capital,” Econet said.
“Econet InfraCo will issue additional shares valued at US$940 164 329 to Econet, following which Econet will hold 2 848 982 817 Econet InfraCo shares, representing 95,215% of the issued share capital of Econet InfraCo, while the exiting shareholders will collectively hold the remaining 4,785%.”
According to Econet, the transfer secretaries have been instructed to commence processing and payment of the cash consideration.
“Payments to foreign shareholders will be subject to exchange control approval and foreign remittance guidelines. Foreign shareholders should appoint a local bank to receive settlement on their behalf and to facilitate remittance,” Econet said.
“InfraCo shares will be allotted ahead of the expected listing of Econet InfraCo on 31 March 2026. The listing of the Econet InfraCo shares on the VFEX shall be conditional upon the listing and admission of the Econet InfraCo shares on the VFEX while the shareholding of foreign shareholders shall be conditional upon Exchange Control Approval.”
Econet anticipates that it will have to issue a dividend in specie to its remaining shareholders to enable InfraCo to meet the free float requirements of the VFEX.
