FBC SECURITIES has backed Econet Wireless Zimbabwe’s plan to delist from the Zimbabwe Stock Exchange (ZSE), describing it as a bold restructuring that could unlock shareholder value.
However, the firm warned that thin market liquidity, governance concentration and valuation risks could temper potential investor gains.
Last week, Econet unveiled a premium exit offer for shareholders ahead of its proposed delisting and the planned US$1 billion listing of Econet Infrastructure Company Limited (InfraCo) on the Victoria Falls Stock Exchange (VFEX) on March 31.
Shareholders have been offered an indivisible US$0,50 per share exit package, comprising US$0,17 in cash and US$0,33 in InfraCo scrip.
InfraCo will house Econet’s real estate, tower and power infrastructure assets, with valuations anchored on long-term US dollar-denominated lease agreements designed to provide predictable and stable cash flows.
Management expects infrastructure expansion to drive sustainable earnings growth and unlock additional shareholder value over time.
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Investor anticipation around the restructuring has already buoyed Econet’s market capitalisation, which rose from US$739,28 million on December 15, 2025 to US$1,07 billion by Tuesday.
FBC Securities characterised the transaction as “structurally value-accretive but execution-sensitive,” recommending that long-term, patient investors selectively participate in the exit offer while maintaining exposure to InfraCo.
“For patient investors, selectively participating in the exit offer while retaining exposure to InfraCo provides a balanced approach, capturing liquidity today while preserving upside optionality in the infrastructure platform,” FBC said.
According to FBC, a full exit would be most appropriate for highly risk-averse investors or those requiring immediate liquidity.
Conversely, retaining only Econet operating company shares could leave investors exposed to governance concentration and ongoing liquidity constraints.
The brokerage noted that the cash component allows shareholders to crystallise value at historically reasonable levels in a thin and illiquid ZSE environment.
Meanwhile, carving out passive infrastructure into InfraCo highlights the intrinsic value of long-life, predictable, cash-generating assets that were previously embedded, and arguably undervalued, within the operating company structure.
Maintaining exposure to InfraCo could offer stronger long-term returns, particularly if VFEX liquidity improves and infrastructure assets begin to attract more appropriate market pricing.
FBC outlined several valuation scenarios for InfraCo, projecting a bull case of US$0,36 per share, a base case of US$0,33, a moderate discount scenario of US$0,28, a liquidity-driven discount of US$0,23 and a severe de-rating at US$0,18.
Even under a scenario where InfraCo’s share price declines by 15% post-listing, the firm estimates total effective exit proceeds would remain around US$0,45 per share, still preserving a meaningful premium relative to Econet’s historical trading levels.
However, FBC cautioned that roughly 64% of the exit offer valuation relies on comparisons with listed real estate peers, which differ materially from InfraCo in scale, asset intensity and cash-flow structure.
The brokerage warned that the market may not immediately accept the implied US$0,33 scrip valuation.
The VFEX listing by introduction could face early trading headwinds, with scrip holders potentially experiencing short-term mark-to-market losses.
Governance concentration is also a concern, as Econet will retain majority ownership of InfraCo, limiting minority shareholders’ influence over strategic direction and capital allocation decisions.
Shareholders who opt to retain Econet shares post-delisting could face reduced liquidity, weaker price discovery, and diminished market discipline.
“This recommendation balances near-term liquidity needs with long-term exposure to infrastructure cash flows, providing an optimal risk/reward profile,” FBC said.
The firm added that a blended valuation framework, combining replacement-cost metrics with income-based approaches, may offer a more accurate assessment of InfraCo’s intrinsic value than relying solely on relative peer comparisons.