Zim dollar option for Econet shareholders in Right Offer
BUSINESS REPORTER
Zimbabwe’s largest mobile telecommunications network operator, Econet Wireless Zimbabwe Limited has given its shareholders the choice of paying their subscription to rights offer in Zimbabwe dollars.
It comes after Econet received Exchange Control Approvals in US dollars for its rights issue, which aims to raise US$30.3m to redeem outstanding debentures.
In a notice to shareholders released yesterday, Econet Wireless Zimbabwe company secretary,Tatenda Ngowe said:
“Members are hereby advised that the company has now obtained Exchange Control Approval for the rights offer to be made in United States Dollars. However, in terms of the Exchange Control Approval, members who are designated as resident in the register of members of the company as at September 1, 2023 shall have an option to follow their rights in local currency.”
She added: “The final Zimbabwe dollars price for the shares shall be determined on the date that the company is allocated foreign currency on the interbank market for the purpose of redeeming the debentures in accordance with the Exchange Control laws of the country.
“Upon payment of a deposit in respect of each share, calculated by multiplying the United States dollar subscription price for each share by the prevailing interbank rate, plus a 10% margin, a subscribing member shall be issued and allotted each share to which the deposit relates as not fully paid and subject to a capital call and to the company’s lien over shares issued but not fully paid for in terms of the articles.”
She said the capital call on the balance shall be made when the foreign currency has been secured and allocated to the company, and the applicable exchange rate shall be the prevailing interbank rate plus a margin of 10%.
In the event of an exchange rate depreciation, interest shall be payable on the ZWL$ balance of the subscription price calculated at the average rate at which Steward Bank Limited and Stanbic Bank Zimbabwe Limited would be lending to be secured with effect from the date the company is allocated foreign currency on the interbank market.
The interest shall be deemed to be part of the balance of the subscription price and shall be part of the capital call.
“In the event of an exchange rate appreciation, the shareholder will be refunded with the remaining Zimbabwe dollars without accruing any interest, after allocation of the foreign currency. The attention of members is drawn to the provisions of the articles relating to the issue and allotment of unpaid or not fully paid shares, the company’s lien on such shares and the provisions relating to capital calls and the forfeiture of shares in the event of nonpayment,”Ngowe said.
