Econet Wireless Zimbabwe is preparing for a landmark corporate restructuring that will see the company voluntarily delist from the Zimbabwe Stock Exchange ZSE and list its infrastructure subsidiary, Econet InfraCo, on the Victoria Falls Stock Exchange VFEX in a transaction valued at 1.078 billion. The move comes as a response to a longstanding "market valuation disconnect," where Econet's intrinsic value has not been fully reflected in its ZSE-traded price, and aims to provide clearer valuation and growth prospects for its various business segments.
As part of the restructuring, Econet plans to delist its 2.99 billion ordinary shares from the ZSE. After the delisting, any trading of Econet shares will take place on an Over-The-Counter OTC platform operated by the VFEX, providing shareholders with continued liquidity options outside the main exchange.
Shareholders who opt not to retain their holdings in the unlisted Econet will have the opportunity to participate in an Exit Offer. This offer is structured as a 'single, indivisible consideration" comprising US0.34 in cash per share and 66 in shares of the newly listed Econet InfraCo, valued at US0.33 per Econet share. This arrangement allows shareholders to maintain exposure to the new infrastructure business while also accessing immediate cash value.
