Econet Reshapes Group Structure with ZSE Delisting and $1.08bn InfraCo Spin-Off
Overall, this corporate action is expected to reshape Zimbabwe’s telecom landscape by creating two clearly defined entities: a nimble, service-focused telecommunications operator and a capital-intensive, revenue-generating infrastructure company, each with distinct growth trajectories and investor propositions.
Econet Wireless Zimbabwe is preparing for a landmark corporate restructuring that will see the company voluntarily delist from the Zimbabwe Stock Exchange (ZSE) and list its infrastructure subsidiary, Econet InfraCo, on the Victoria Falls Stock Exchange (VFEX) in a transaction valued at $1.078 billion. The move comes as a response to a longstanding “market valuation disconnect,” where Econet’s intrinsic value has not been fully reflected in its ZSE-traded price, and aims to provide clearer valuation and growth prospects for its various business segments.
As part of the restructuring, Econet plans to delist its 2.99 billion ordinary shares from the ZSE. After the delisting, any trading of Econet shares will take place on an Over-The-Counter (OTC) platform operated by the VFEX, providing shareholders with continued liquidity options outside the main exchange.
Shareholders who opt not to retain their holdings in the unlisted Econet will have the opportunity to participate in an Exit Offer. This offer is structured as a “single, indivisible consideration” comprising US$0.34 in cash per share and 66% in shares of the newly listed Econet InfraCo, valued at US$0.33 per Econet share. This arrangement allows shareholders to maintain exposure to the new infrastructure business while also accessing immediate cash value.
Econet InfraCo, valued at approximately $1.078 billion, will consolidate the group’s real estate, passive telecommunications infrastructure—including towers—and renewable energy assets. The entity represents Zimbabwe’s first integrated real estate and telecommunications infrastructure platform, designed to operate as a standalone, income-generating company with long-term, USD-denominated contractual revenues.
The strategic rationale behind the restructuring is to enhance valuation transparency by unbundling the capital-intensive infrastructure from the active telecommunications operations. This separation allows the telecom business to focus on core digital services such as mobile connectivity and fintech, while Econet InfraCo can be independently valued and financed based on its distinct risk and return profile. By listing on the VFEX, Econet InfraCo benefits from a USD-denominated market environment, positioning it for greater investment appeal and stability.
Overall, this corporate action is expected to reshape Zimbabwe’s telecom landscape by creating two clearly defined entities: a nimble, service-focused telecommunications operator and a capital-intensive, revenue-generating infrastructure company, each with distinct growth trajectories and investor propositions.
