Econet Wireless Zimbabwe Limited has received overwhelming support from its minority shareholders for the company’s decision to voluntarily delist from the Zimbabwe Stock Exchange (ZSE) and transition to an Over-the-Counter (OTC) trading platform as part of a significant corporate restructuring.
During an Extraordinary General Meeting held in Harare, proposed resolutions garnered more than 95 percent approval from both institutional and retail minority investors. Notably, the majority shareholder abstained from voting on the delisting resolution to ensure the independence and credibility of the process.
The strategic move to migrate to an OTC platform aims to address liquidity constraints and valuation inefficiencies observed in ZSE trading. This transition offers Econet increased flexibility in price discovery and capital management, potentially enhancing shareholder value preservation within a regulated trading environment.
Shareholders also supported the Exit Offer with a 96.6 percent approval rate. The offer, providing US$0.50 per share, comprises US$0.17 in cash and US$0.33 in Econet InfraCo shares for each Econet share tendered. This structured approach offers immediate liquidity through cash while enabling continued participation in infrastructure assets through InfraCo equity.
The inclusion of InfraCo shares signifies a strategic realignment within the group, segregating infrastructure assets into a separate entity to potentially unlock standalone value, optimize capital allocation, and improve operational focus.
With strong support for additional resolutions amending the company’s Articles of Association and granting directors authority to execute the transaction, the board is now equipped with the necessary legal and operational flexibility for an efficient restructuring process.
Econet’s departure from the ZSE is a significant corporate move in Zimbabwe’s capital markets, yet the structured OTC migration ensures continued local investor involvement. The transaction provides institutional investors with a structured liquidity route while maintaining exposure to a vital national infrastructure asset. Retail investors have the choice between immediate monetization or long-term value creation through InfraCo shares.
Having secured shareholder approvals exceeding 95 percent across all resolutions, Econet is poised to move forward with its strategic restructuring, signaling a shift towards a more adaptable capital structure, targeted asset segmentation, and alternative trading mechanisms that could influence broader capital market reforms in the country. The transaction now enters the implementation phase, heralding a new era in Econet’s corporate journey and potentially reshaping the local investment landscape.
