Econet Wireless Zimbabwe Moves to Voluntarily Delist from ZSE, Unveil Infrastructure Spin-Off
Econet has advised shareholders and the investing public to exercise caution when dealing in the company’s securities until further announcements are made regarding the delisting process and related transactions.
Econet Wireless Zimbabwe Limited has announced plans to voluntarily delist from the Zimbabwe Stock Exchange (ZSE), subject to shareholder approval. The decision follows a board resolution and a cautionary announcement issued on December 3, 2025, as the company seeks to unlock shareholder value and address long-standing valuation challenges.
The company noted that its shares have traded at a significant discount to comparable African telecom operators, which typically trade at enterprise value multiples of between six and eight times EBITDA. Unlike its peers, Econet has retained ownership of its towers and other passive infrastructure assets, which are commonly separated into standalone infrastructure entities to improve valuation transparency and capital efficiency.
As part of the restructuring, Econet has established a new subsidiary, Econet Infrastructure Company Limited (Econet InfraCo), which will hold the group’s real estate, tower, and power assets. This move aligns with international best practice in the telecommunications sector, where operators separate passive infrastructure into dedicated tower companies to enable focused asset management and clearer valuation.
Econet will retain a 70 percent stake in Econet InfraCo, while up to 30 percent of the shares will be allocated toward a voluntary exit offer for shareholders who choose not to remain invested following the delisting. The exit offer will be funded through a combination of cash and shares in Econet InfraCo, with the valuation of the infrastructure company to be determined by an independent expert to ensure fairness and regulatory compliance.
The company also plans to list Econet InfraCo on the Victoria Falls Stock Exchange (VFEX) by way of introduction. According to the board, infrastructure assets are better suited to USD-denominated property and infrastructure markets, where companies typically trade at higher valuation multiples. The VFEX is therefore viewed as a more appropriate platform for recognising the long-term value of Econet’s infrastructure assets.
Following the proposed delisting, trading in Econet Wireless Zimbabwe shares will no longer take place on the ZSE. Shareholders will be able to transact privately, subject to the company’s amended Memorandum and Articles of Association, the Companies and Other Business Entities Act, and reinstated shareholder pre-emption rights.
Econet has advised shareholders and the investing public to exercise caution when dealing in the company’s securities until further announcements are made regarding the delisting process and related transactions.
