Econet extends share offer to creditors

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By Alois Vinga

ECONET Wireless Zimbabwe (EWZL) has extended an offer allowing creditors to convert debentures into shares in the giant mobile telecoms company.

The development was confirmed managing director Peter Zimunya in a letter dated November 14, 2018.

“Subject to shareholder and regulatory approval, Econet hereby makes and offer for each debenture (credit) holder to convert their debentures into equity on the basis of 93.3 new ordinary shares for every 100 debentures held.

“This is intended to put the debenture holders in the same position they would have been in had the company not compelled them to take debentures in place of shares,” says the letter in part.

The offer involves the conversion of 1,166,906,618 debentures in issue with a face value of 5 cents into ordinary shares.

Creditors who choose not to convert some or all of their debentures make a final choice which is irrevocable and may not be withdrawn once made.

Econet Wireless is the country’s largest provider of telecommunications services, providing solutions in mobile and fixed wireless telephony, public pay-phones, internet access and payment solutions.

The company launched its network in July 1998 and listed on the Zimbabwe Stock Exchange in September of the same year.

It has, over the years, grown to become one of the largest companies on the bourse in terms of market capitalisation.