Econet to pay $24.3m after exit offer ahead of ZSE delisting

Econet Wireless Zimbabwe will pay approximately $24.3 million in cash to shareholders who accepted its exit offer ahead of the company’s planned delisting from the Zimbabwe Stock Exchange (ZSE) on 31 March 2026.

The company said investors tendered 143.18 million shares when the exit offer closed on 9 March, representing about 4.785% of its issued share capital.

Under the offer terms, shareholders who participated will receive $0.17 in cash and one Econet Infrastructure Company Limited (InfraCo) share for every Econet share tendered.

Exit offer restructuring plan

The total exit offer consideration amounted to $0.50 per share, comprising $0.17 in cash and one InfraCo share valued at approximately $0.33.

“At the close of the exit offer period, the company had received valid acceptances of 143 180 386 shares, representing approximately 4.785% of the issued share capital of the company,” Econet said in a statement.

The shares tendered under the offer will be cancelled once settlement is completed, which will result in an increase in the proportional shareholding of remaining investors.

InfraCo shares allocated to investors

Participating shareholders will also receive 143.18 million InfraCo shares valued at about $47.25 million as part of Econet’s restructuring ahead of the planned listing of InfraCo on the Victoria Falls Stock Exchange (VFEX).

Econet said the allocation of InfraCo shares forms part of a broader restructuring strategy designed to separate infrastructure assets from the main telecommunications business.

Following the transaction, Econet will remain the majority shareholder of InfraCo.

“EWZL currently holds 2 000 shares in Econet InfraCo, representing 100% of the issued share capital,” the company said.

The company said additional shares valued at $940.16 million will be issued to Econet, increasing its holding to 2.84 billion InfraCo shares.

This will represent approximately 95.215% of the issued share capital of InfraCo, while shareholders who accepted the exit offer will collectively hold the remaining 4.785%.

Settlement process underway

Econet said its transfer secretaries have been instructed to begin processing the cash payments and share allocations.

Payments to foreign shareholders will be subject to exchange control approvals and foreign remittance regulations.

Foreign investors have been advised to appoint local banks to receive settlement funds and facilitate the transfer of payments.

InfraCo shares are expected to be allotted ahead of the anticipated listing of Econet Infrastructure Company on the VFEX on 31 March 2026.

The company added that it may also issue a dividend in specie to remaining shareholders to ensure InfraCo meets the free-float requirements of the VFEX.