Econet Wireless Zimbabwe Ltd. has moved to delist from the Zimbabwe Stock Exchange, after years of trading at a steep valuation discount to regional peers.
- Econet Wireless Zimbabwe Ltd. plans to delist from the Zimbabwe Stock Exchange, citing undervaluation compared to regional peers.
- The company intends to restructure by spinning off its infrastructure assets into a new entity called Econet Infrastructure Company Limited.
- Econet InfraCo will hold its towers, real estate, and power assets, with 70% owned by Econet and 30% available for shareholder settlements.
- This move aligns with practices by other African telecom operators, aiming to unlock higher shareholder value.
Econet Wireless Zimbabwe Ltd. has moved to delist from the Zimbabwe Stock Exchange, after years of trading at a steep valuation discount to regional peers.
The telecom operator, controlled by Zimbabwe’s richest man, Strive Masiyiwa, said the decision forms part of a broader corporate restructuring aimed at unlocking value.
“For the last several years, the company has traded at a significant discount to its peers across Africa, which trade at 6–8 times EV/EBITDA,” Econet said. “These peers have already separated and realised value from their tower infrastructure.”
Infrastructure spin-off
However, Econet will retain ownership of its towers and other passive assets. Under the proposed restructuring, the company plans to spin off its infrastructure business and list it on the Victoria Falls Stock Exchange (VFEX).
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The new entity, to be called Econet Infrastructure Company Limited (Econet InfraCo), will house the group’s towers, real estate and power assets, mirroring global telecoms best practice, where passive infrastructure is separated into dedicated tower companies.
Econet will retain a 70% stake in the infrastructure company, while up to 30% of the shares will be used to settle the exit offer for shareholders who choose not to remain invested following the delisting.
The move aligns Econet with a growing number of African telecoms operators, including MTN, Vodacom, Airtel and Orange, that have spun off or sold their infrastructure assets to unlock shareholder value.
A shareholder meeting to consider the proposal is scheduled for January 2026. Before the delisting becomes effective, Econet plans to extend a voluntary exit offer, allowing investors who do not wish to hold shares in an unlisted company to either cash out or receive part-payment in shares of the newly created infrastructure subsidiary.
