Econet offers departing shareholders unprecedented 200% premium

STAFF WRITER

Econet Wireless Zimbabwe has unveiled one of the most investor-friendly delisting proposals ever seen on the Zimbabwe Stock Exchange (ZSE), offering shareholders an exit price that represents a 200% premium to the company’s trading price at the time the first cautionary statement was published, dated 4 December 2025.
Under the proposal, shareholders who choose not to migrate to an Over-The-Counter (OTC) platform after the transaction will be paid US$0.50 per share – a level far above the premiums typically associated with similar transactions on the ZSE, which rarely exceed 20%. The offer stands out not only for its size, but for the broader safeguards built into the transaction.
Unlike most such transactions, Econet is not forcing shareholders to sell. Instead, the company has structured its proposal to preserve choice for investors who wish to remain. Econet has committed to continuing dividend payments and publishing its financial results in line with public company standards and the Companies Act, even after it leaves the ZSE main board and migrates to the OTC platform.
To address liquidity concerns, the company has also made arrangements for its shares to continue trading post its migration to an Over-The-Counter (OTC) platform, hosted on infrastructure associated with the Victoria Falls Stock Exchange (VFEX).
Under this arrangement, the company will act as a buyer of last resort at a floor price derived from a valuation of the company based on its fundamentals, thereby insulating shareholders from loss of value while buyers are being sought.
The delisting will effectively see two Econet-related entities trading separately, as the group plans to independently list its real estate, passive telecommunications infrastructure and renewable energy business, Econet InfraCo.
Details of the proposal were outlined in circular approved by the ZSE and released this week. Market reaction was immediate, with Econet shares trading at an average daily volume-weighted price about 16.73% higher – above the normal daily upside circuit breaker, amid a notable scarcity of sellers.
Econet’s move comes amid growing pressure on companies listed on the ZSE, where currency volatility, valuation distortions and declining liquidity have increasingly weighed on share prices.
Several firms have exited or reduced exposure to the local bourse in recent years, citing challenges in capital raising and price discovery.
Econet, one of the market’s largest and most widely held stocks, has framed its migration from the ZSE’s Main Board and transition to the VFEX-operated OTC platform as a strategic restructuring rather than a withdrawal from the capital markets.