By Patience Gondo
Econet Wireless Zimbabwe Limited has announced plans to voluntarily delist from the Zimbabwe Stock Exchange (ZSE) citing persistent undervaluation of its shares and increasing difficulty in raising capital for network expansion and technology upgrades.
In a cautionary announcement dated 3 December 2025, Group Company Secretary Tatenda Ngowe said the board had observed that Econet’s share price no longer reflects the company’s true worth.
“The Board has observed that the Company’s share price on the Zimbabwe Stock Exchange is grossly undervalued in relation to the intrinsic value of the Company’s operations and infrastructure assets,” Ngowe said.
He said the undervaluation has had tangible consequences for the business.
“It has restricted Econet’s ability to raise competitively priced funding.
It has also slowed investment in critical network infrastructure and future technology.
As a result shareholder value has continued to erode despite growth in the underlying business,” Ngowe said.
According to the company, this misalignment between market value and intrinsic value prompted the board to begin assessing major corporate actions.
Econet said the evaluation was aimed at unlocking shareholder value, improving access to capital and strengthening the company’s long-term competitiveness.
At the time the company warned that the outcome of the process could have a material effect on the price of its securities.
That evaluation has now resulted in a decisive move.
In a further cautionary announcement issued on December 16 2025, the board confirmed it had resolved to pursue a voluntary delisting from the Official List of the ZSE.
The delisting will be subject to shareholder approval in terms of the ZSE Listings Requirements.
For shareholders, Econet said the transition will not be abrupt.
Before the delisting becomes effective, the company will extend a voluntary exit offer to eligible investors.
This will allow shareholders who do not wish to remain invested in an unlisted company to realise value.
“Prior to the delisting becoming effective the Company will extend a voluntary Exit Offer to eligible shareholders enabling them to realise value for their investment,” Ngowe said.
He said the exit offer will be funded partly in cash and partly through shares in a newly created infrastructure business.
At the centre of the restructuring is Econet Infrastructure Company Limited known as Econet InfraCo.
The entity will hold the group’s towers, real estate, and power assets.
Ngowe said the separation aligns with international best practice where mobile network operators place passive infrastructure into dedicated companies.
“This approach provides clearer visibility of asset values.
It allows more disciplined capital allocation.
It creates a focused operational strategy for infrastructure deployment and management,” he said.
Econet will retain 70 % of the issued shares in Econet InfraCo.
Up to 30 % will be allocated toward settling the exit offer for shareholders who choose not to remain invested in Econet after the delisting.
The value of Econet InfraCo shares will be determined by an independent valuation expert.
The company said this is intended to ensure fairness, transparency and regulatory compliance.
Econet also plans to list Econet InfraCo on the Victoria Falls Stock Exchange by way of introduction.
The company said infrastructure assets represent a different class of investment.
“They are better understood and more appropriately valued in United States dollar based property and infrastructure markets,” the company said pointing to higher price to earnings multiples achieved by listed real estate and infrastructure firms on the VFEX.
“It is the Board’s view that the VFEX provides an appropriate platform for recognising the long-term value of Econet InfraCo,” Ngowe said.
The move comes as Econet continues to trade at a significant discount to its African peers.
The company said comparable operators trade at between six and eight times EV/EBITDA.
Most of those peers have already separated and monetised their tower infrastructure.
Econet is only now moving in that direction.
For small shareholders, the decision carries both financial and emotional weight.
Many have held Econet shares through years of economic volatility.
They now face a choice between cashing out or remaining invested in a restructured group outside the public market.
Econet said shareholders and the investing public should continue to exercise caution when dealing in the company’s securities.
The board said it will update shareholders as soon as further information becomes available.
If approved the delisting will mark the end of Econet’s long presence on the ZSE.