Econet gets shareholders’ nod to raise US$30.3m
BUSINESS REPORTER
Zimbabwe’s largest mobile network operator, Econet Wireless Zimbabwe Limited, has secured approval from shareholders to raise US$30.3m through a rights issue in order to redeem outstanding debentures, Business Times can report.
The debentures were issued in March 2017 as a part of a capital raise for US$128m to pay external creditors.
The debentures are a medium- to long-term debt instrument used by large companies to borrow money, at a fixed rate of interest.
The right offer was approved by 99.21% of the company’s shareholders at the extraordinary general meeting (EGM) held on Monday this week.
Econet company secretary Charles Banda said the shareholders voted in the favour of raising US$30.3m without necessarily affecting the financing of the upgrade and maintenance of the digital platforms.
“The directors of the company be and are hereby authorised to offer renounceable rights offer shares in the ratio of 17.122 new shares for every 100 shares already held in the company at the close of business on August 18, 2023 of an aggregate of 401,586,371 Ordinary Shares of a nominal value of ZWL$0.001 each in the company’s authorised share capital to existing holders of the company’s ordinary shares, for subscription pro-rata to their existing shareholdings, in United States dollars at a price of US$0.0755 each payable in full in United States dollars, with an option to pay in the form of Econet Wireless debentures at a price of US$0.06252 per each debenture, and to issue and allot such shares as may be subscribed to pursuant to the rights offer to such shareholders,” Banda said.
He added: “…The rights on offer may only be renounced in favour of existing shareholders of the company.
According to Banda, the last day of dealing with the Shares on a cum-rights basis will be this Friday, August 11 2023, and the Shares will be dealt with on an ex-rights basis starting on Wednesday, August 16 2023, in accordance with the anticipated timeline in the circular.
Voting at the EGM was taken by poll through online voting and there were neither vetoes nor amendments to the resolutions, and no new proposal was submitted for voting and approval at the EGM.
A total of 419 Shareholders (or their proxies), holding an aggregate of 2,117,439,593 shares with voting rights, representing approximately 90.31% of the total shares with voting rights, attended the EGM.
Banda said no shareholder was required to abstain from voting on the resolutions at the EGM pursuant to the Zimbabwe Stock Exchange listing rules.
