KEY POINTS
- Econet Zimbabwe delisting plan includes $1bn infra spinoff.
- Econet Zimbabwe delisting hinges on shareholder vote
- Econet Zimbabwe delisting raises valuation and liquidity concerns.
Strive Masiyiwa’s Econet Wireless Zimbabwe has ignited debate in local markets after unveiling plans to delist from the Zimbabwe Stock Exchange and spin out a new infrastructure company pitched at a valuation of about $1 billion.
The proposal, which Econet describes as a move to unlock shareholder value, has resonated with investors frustrated by currency volatility and thin trading on the local bourse. It has also prompted caution from analysts who say headline valuations should not obscure questions around liquidity, pricing and execution.
Econet Zimbabwe delisting reshapes ownership structure
Under the plan, Econet intends to exit the ZSE and migrate trading to an over-the-counter platform linked to the Victoria Falls Stock Exchange framework.
At the same time, the company plans to list a new entity, Econet InfraCo, on the VFEX by introduction, meaning it will not raise fresh capital at the point of listing. Instead, the company will distribute InfraCo shares to existing Econet shareholders as part of an exit package.
According to details circulated in shareholder materials, InfraCo would hold towers, energy assets and property, while the core mobile operations would remain outside the listing.
According to Billionaires Africa, The transaction carries a combined implied valuation of about $1.52 billion, comprising a valuation for the operating telecoms business and a separate assessment for InfraCo provided by an independent adviser. Minority shareholders are being offered a package valued at $0.50 per share, made up of $0.17 in cash and $0.33 in InfraCo shares.
Econet Zimbabwe delisting faces valuation questions
That structure has drawn scrutiny from market watchers, including analyst Tinashe Mukogo, who warned investors not to confuse deal valuations with guaranteed exit value. In comments widely shared among brokers and retail investors, Mukogo said the outcome for shareholders will depend largely on how InfraCo trades after listing and how easily investors can sell the shares.
He argued that while infrastructure assets such as towers can be attractive, particularly in dollar-denominated markets, liquidity constraints and uneven price discovery could limit the ability to realise the implied value in practice.
Econet has framed the restructuring as part of a broader telecoms trend, where operators separate capital-intensive infrastructure from service businesses. Similar moves elsewhere in Africa have seen tower assets attract steadier investor interest than mobile operations exposed to regulation and currency risk. Supporters say a US dollar-based venue like the VFEX could help reduce pricing distortions.
The proposal also has wider implications for Zimbabwe’s capital markets. A $1 billion infrastructure listing would be one of the largest events associated with the VFEX, potentially boosting its profile as a hard-currency alternative.
Shareholders are due to vote on the plan at an extraordinary general meeting on Feb. 26, with the InfraCo listing targeted for late March, subject to regulatory approval.
