Econet to exchange 51% stake in Liquid Telecom Zimbabwe
By Staff reporter | 28 Sep 2018 at 14:07hrs
Econet is also pursuing the exchange of the company's 51% stake in Liquid Telecom Zimbabwe "for a stake of equivalent value in the holding company, Liquid Telecom Holdings".
In 2017 Liquid acquired South Africa's Neotel and rebranded it as Liquid South Africa.
This is in anticipation of Liquid Telecom Holdings move to list "on a reputable international" stock exchange.
Reports in Zimbabwe also say Liquid Telecom is to merge with internet retailer ZOL as the company seeks to consolidate its corporate standing.
Shareholders and debenture holders in the company, as well as other investors, have been advised of the "conversion to equity of debentures that were issued as part of the company's rights offer" in March 2017.
This follows the refusal by Zimbabwean authorities to approve "a sinking fund account which would have been used to repay the debentures into an external foreign currency denominated account".
In the year to February 2018, after tax profits in Econet Wireless strengthened by 266% to US$132 million, driven by a revenue surge to US$832 million.
The interim year to the end of August 2018 is also expected to have been stronger owing to increased data usage during elections and continued reliance by Zimbabwean consumers on EcoCash for transaction payments as Zimbabwe continues to wobble from liquidity constraints, said dealers on the ZSE.