Econet engages ZSE
LIVINGSTONE MARUFU
Econet Wireless Zimbabwe, the country’s largest mobile network operator, is engaging the Zimbabwe Stock Exchange (ZSE) to expedite its delisting from the bourse as it plans to move its property and infrastructure assets to the US dollar-based Victoria Falls Stock Exchange (VFEX) to unlock shareholder value.
The company will combine its towers, property, and power installations into a new entity, Econet Infrastructure Company Limited (Econet InfraCo), to be listed on the VFEX.
Company secretary, Tatenda Ngowe, confirmed the latest development saying: “….shareholders are advised that Econet Wireless Zimbabwe Limited has commenced engagements with the ZSE with a view to publishing a circular to shareholders in relation to the proposed voluntary delisting of the company and the proposed listing of Econet Infrastructure Company, a vehicle holding Econet’s real estate, telecommunications tower and renewable energy assets on the Victoria Falls Stock Exchange.”
Ngowe said the company has traded at a significant discount to its African peers, which trade at 6–8x EV/EBITDA, noting that those peers have already separated and realised value from their tower infrastructure. Under the plan, Econet will retain a 70% stake in Econet InfraCo, offering up to 30% of shares to existing shareholders through a voluntary exit offer payable in a combination of cash and InfraCo shares.
Ngowe stated: “The valuation of Econet InfraCo’s shares will be determined by an independent valuation expert to ensure fairness, transparency, and regulatory compliance.”
The company argues the VFEX is a more appropriate platform for infrastructure assets, given the higher Price-to-Earnings multiples for listed real estate and infrastructure companies there, and that these assets represent a different investment class better understood within US dollar-based markets.
This move follows a broader African trend where telecom giants like MTN, Airtel Africa, Vodacom, Orange, and Telkom South Africa have sold or carved out tower units to realise substantial value.
Econet remains the leader in Zimbabwe’s telecommunications, controlling 88% of voice traffic, 82% of data usage, and 73% of subscribers.
Analysts view Econet’s departure as a major blow to the ZSE, as the company represents roughly a third of the exchange’s market value and is one of its most liquid stocks. The move is part of an ongoing trend of high-value delistings from the ZSE, with companies citing the undervaluation of assets on the local currency platform.
Shareholders wishing to trade EWZ shares after delisting will do so privately, with pre-emption rights reinstated.
