The decision follows a board resolution and a cautionary notice issued on 3 December 2025, as the company seeks to address valuation issues and unlock shareholder value.
The company highlighted that its shares have been trading at a significant discount compared to regional peers, which typically trade at enterprise value multiples of six to eight times EBITDA. Unlike many of its counterparts, Econet owns its towers and passive infrastructure assets outright, rather than separating them into standalone infrastructure entities to enhance valuation transparency and capital efficiency.
To facilitate this 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 practices in telecommunications, where operators establish dedicated tower companies to optimize asset management and improve valuation.
Econet intends to retain a 70% stake in Econet InfraCo, with up to 30% of its shares offered through a voluntary exit scheme for shareholders who prefer not to remain invested after delisting. This exit offer will be financed via a mix of cash and shares in Econet InfraCo, with valuation conducted by an independent expert to ensure fairness and compliance with regulations.
The company also plans to list Econet InfraCo on the Victoria Falls Stock Exchange (VFEX) by way of introduction. The board believes infrastructure assets are better valued in USD-denominated markets like VFEX, where companies often trade at higher multiples. This move aims to better reflect the long-term value of Econet’s infrastructure holdings.
Once the delisting is complete, trading in Econet Zimbabwe shares will cease on the ZSE. Shareholders will be able to transact privately under the amended Memorandum and Articles of Association, subject to the Companies and Other Business Entities Act, and with reinstated pre-emption rights.
Econet has advised shareholders and investors to exercise caution in dealing with its securities until further updates on the delisting process and associated transactions are provided.
