ECONET Wireless Zimbabwe (EWZ) has outlined an elaborate roadmap for its voluntary delisting from the Zimbabwe Stock Exchange and joining the US dollar-denominated Victoria Falls Stock Exchange (VFex).
Following the proposed delisting, Econet will establish a separate infrastructure entity, Econet Infrastructure Company Limited (Econet InfraCo), which will be listed on VFex.
According to a circular to shareholders released today (Wednesday), the firm set 31 March as both the last day of share trading on ZSE and listing of Econet InfraCo shares on VFEX.
Before these two significant events, an extraordinary general meeting of shareholders in person or via proxy will be convened on 26 February. Publication of the EGM results is planned for 27 February.
The EGM is to consider and if deemed fit, approve the proposed resolutions relating to the voluntary delisting and Exit Offer.
The voluntary exit marks a significant corporate restructuring by Zimbabwe’s largest telecommunications provider.
The decision follows a cautionary statement issued on December 3, in which Econet indicated it was exploring strategic options to unlock shareholder value, enhance long-term competitiveness, and improve access to capital.
According to the circular, the form notes that subject to shareholder approval of the voluntary delisting and fulfilment of all applicable regulatory conditions, “Econet will implement an US Dollar-denominated Exit Offer providing eligible shareholders with the opportunity to fully realise the value of their existing investment in the company.”
The Exit Offer has been structured to ensure that shareholders who elect to exit are adequately and fairly compensated for their investment in Econet while also being afforded the opportunity to participate in the long-term value of the Group’s infrastructure platform, it said.
“Accordingly, the Exit Offer represents the aggregate of Econet’s implied market capitalisation of approximately US$507 million, determined with reference to the 90 day VWAP up to the date of release of the first cautionary announcement and the implied valuation of Econet InfraCo approximately US$1.0 billion as determined by the independent financial advisor, reflecting the intrinsic value of the Group’s real estate, passive telecommunications infrastructure and renewable energy assets.”
Following the voluntary delisting, Econet will remain a public company, it said.-herald
