Econet investors to get 150pc premium in split value exit offer

Econet Wireless Zimbabwe shareholders will get US$0,50 per share split-value exit offer ahead of the mobile telecoms firm’s proposed voluntary delisting from the Zimbabwe Stock Exchange. If approved by shareholders and regulators, Econet would proceed to separately list the spinoff infrastructure company on the Victoria Falls Stock Exchange (VFEX). The exit offer to shareholders represents a premium of more than 150 percent to the 90-day Volume Weighted Average Price VWAP before the first cautionary on the transaction and up to 400 percent compared to selected 2025 trading prices, levels the board describes as exceptional by both local and regional standards.

In the detailed circular to shareholders, dated February 4, 2026, the company’s board said the decision was driven by a persistent and damaging “valuation disconnect.” Zimbabwe’s biggest mobile network operator said the proposed transaction will unlock value that has remained suppressed by structural constraints in the local capital market, despite years of heavy investment in infrastructure. Econet will seek shareholder approval at the company’s Extraordinary General Meeting scheduled for February 26. It said failure to approve the delisting would derail the proposed restructuring, including the exit offer and the proposed VFEX listing of Econet InfraCo.

“Should shareholders fail to approve the voluntary delisting of the company, the Exit Offer will not be implemented and Econet InfraCo will not be listed on any securities exchange,” the circular says. At the heart of the planned restructuring is Econet’s contention that its ZSE valuation no longer reflects its true economic worth. Its board argues that reduced market liquidity, limited institutional participation and weak price discovery have created a persistent gap between the company’s traded share price and the value of its underlying assets.

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According to the circular, this disconnect has reached a point where raising equity capital at prevailing prices would be “value-destructive” to long-term shareholders. To address asymmetry, Econet has proposed to delist its 2,99 billion ordinary shares from the ZSE, spin off the infrastructure business and separately l1st it on VFEX. Its telecoms business would continue operating as an unlisted public company.

Trading in Econet shares would occur on an over-the-counter platform operated by the VFEX, subject to a floor price and board-determined liquidity mechanisms. “The post-transaction structure positions Econet as a focused digital telecommunications business, with control over its active network and customer platforms, while Econet InfraCo is established as a separately listed company bringing together real estate, passive telecoms infrastructure and renewable energy assets,” the circular read. The company has also indicated that, after an initial post-delisting period, it may repurchase up to 10 percent of its shares annually, subject to solvency and liquidity conditions.

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