Econet Wireless Zimbabwe’s minority shareholders have overwhelmingly endorsed a sweeping restructuring that will see the telecoms giant voluntarily delist from the Zimbabwe Stock Exchange and separately list its infrastructure arm, Econet InfraCo, on the Victoria Falls Stock Exchange.Made in Zimbabwe branding
The decisive vote at an Extraordinary General Meeting (EGM) marks one of the most significant corporate actions on the local bourse in recent years, effectively reshaping the group’s capital structure and market positioning.
Presenting the results, Econet chairman Dr James Mayers said the resolutions had received overwhelming backing from eligible shareholders.
“Special Resolution No. 1, which was a delisting resolution, passed with an affirmative vote of 95 percent,” he said.
Dr Mayers emphasised that controlling shareholders were barred from voting on the delisting resolution in line with ZSE regulations.
“I will point out to you that under the regulations of the ZSE, controlling shareholders were not allowed to vote. So, that 95 percent is based on the minority shareholders who were eligible to vote,” he said.
Special Resolution No. 2 of an exit offer of a total consideration of US$0,50 per share passed with 96,6 percent support.
Shareholders also gave the nod to Special Resolution No, 3 pertaining to the listing of Econet InfraCo, a new entity which holds the group’s real estate, passive telecommunications infrastructure and power assets on the VFEX, secured 97,3 percent backing.
“With Special Resolution No. 2 and No. 3, all shareholders were allowed to vote on Ordinary Resolution No. 1 or Resolution No. 4,” Dr Mayers added.
The outcome underscores robust minority shareholder confidence in the board’s strategic direction at a time when local capital markets are undergoing structural shifts.
The approved corporate actions are inter-conditional and comprise three main components.
Firstly, Econet will voluntarily delist its entire issued share capital of 2,99 billion ordinary shares from the ZSE. Following delisting, Econet shares will be tradable on an Over-The-Counter (OTC) platform operated by the VFEX.
Secondly, the company will extend a conditional exit offer to shareholders who may prefer not to remain invested in an unlisted public entity. The offer is valued at US$0,50 per share and structured as a single, indivisible package.
It consists of a US$0,17 per share cash component, representing the company’s 90-day Volume Weighted Average Price (VWAP), and a US$0,33 per share share component, to be settled through the issuance of one new Econet InfraCo share for each Econet share tendered.
Thirdly, Econet InfraCo, which houses the group’s real estate portfolio, passive telecommunications infrastructure and power assets, will be listed by introduction on the US dollar-denominated VFEX.
Analysts say the listing of infrastructure assets on the VFEX could unlock value, given the exchange’s hard currency trading environment and potential appeal to foreign investors.
Shareholders now face two clear options. Those who accept the exit offer will receive immediate US dollar liquidity through the US$0.17 per share cash payment while retaining exposure to infrastructure assets via publicly tradable Econet InfraCo shares on the VFEX.
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Those who decline the offer, or take no action, will remain shareholders in Econet Wireless Zimbabwe Limited, which will become an unlisted public company.Made in Zimbabwe branding
Although the shares will no longer trade on the ZSE, a trading mechanism will be available via the VFEX-operated OTC platform, albeit potentially with different liquidity dynamics.Made in Zimbabwe branding
Market observers note that the restructuring aligns with global trends where telecom operators separate infrastructure assets to enhance balance sheet flexibility and improve access to capital.
In a rare address to shareholders, his first since 1999, Econet Global Group chairman Strive Masiyiwa set out an ambitious roadmap for the business following the approval of the resolutions.
He revealed that he recently challenged management to scale the company’s revenues significantly.
“I called Douglas Mboweni and I said, Douglas, what is your revenue? He said, Mr Masiyiwa, we are closing in on one billion. We are back. I said, yes, but I want a plan for three billion in five years,” he said.
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Mr Masiyiwa stressed that telecommunications is a capital-intensive industry requiring continuous upgrades.
“Every five years, we have to upgrade our network. People talk of 3G, 4G, 5G. What does that even mean? We were once 1G. Telecommunication systems are like software. We have to buy the next version,” he said.
“It is not the towers. It is the equipment we buy from Ericsson or ZTE and we have to issue guarantees. We have to secure credit lines from them. How can we secure them when our company is only worth US$500 million?”
He said the group must prepare not only for the nationwide 5G rollout but also for the next technological shift driven by artificial intelligence.
“We must prepare our business for the 6G revolution, which is going to be triggered by the age of AI,” he said, adding that 5G would be extended beyond urban centres into rural communities.
Mr Masiyiwa announced that Econet AI Zimbabwe, which employs over 500 people, would be launched within weeks. Its AI-powered customer experience platform, Yemurai, now processes 70 percent of incoming customer calls and has been trained in Shona and Ndebele, with additional local languages in development.Made in Zimbabwe branding
He also highlighted the group’s five-megawatt data centre, described as the largest outside South Africa, and the ongoing construction of a 10-megawatt facility.
Turning to infrastructure expansion, he said Econet InfraCo would spearhead development of a technology hub on land near Robert Gabriel Mugabe International Airport.
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“The first thing going into that tech hub is 100 megawatts of power. The equipment begins to arrive next month from China. We do not talk. We do,” he said.
“That is what you just enabled by your vote. Had the vote not been a yes, this would have died today.”
With the minority vote secured, Econet now embarks on a new corporate chapter aimed at strengthening its capital base, unlocking infrastructure value and positioning Zimbabwe as a regional technology hub.-herald
