BREAKING: Econet Wireless Zimbabwe Ltd. has unveiled a plan to delist from the Zimbabwe Stock Exchange and spin off its infrastructure into a new listed entity on the Victoria Falls Stock Exchange, in a bid to unlock value for shareholders.
The telecom group, controlled by Zimbabwe’s wealthiest businessman, Strive Masiyiwa, described the move as part of a broader restructuring designed to close a persistent valuation gap with regional peers.
“For the last several years, the company has traded at a important discount to its peers across Africa, which trade at 6-8 times EV/EBITDA,” Econet said.“These peers have already separated and realised value from their tower infrastructure.”
Infrastructure spin-off
Table of Contents
- 1. Infrastructure spin-off
- 2. What changes for investors and the market
- 3. evergreen context and market backdrop
- 4. Reader questions
- 5. 4,800 masts operating under long‑term lease agreements with mobile operators.
- 6. Swift Facts
- 7. Timeline of the Delisting Decision
- 8. Why Econet Wireless Is Choosing to Delist
- 9. Econet Infrastructure Ltd.: The New Listing Blueprint
- 10. Core Assets
- 11. IPO Structure
- 12. Use of Proceeds
- 13. Impact on Shareholders
- 14. market Reaction & Analyst Outlook
- 15. Practical Tips for Investors
- 16. Comparable Telecom Spin‑Offs
- 17. Regulatory Checklist
- 18. Frequently Asked Questions (FAQs)
Under the plan,Econet will retain ownership of its towers and other passive assets by creating a dedicated infrastructure vehicle. The new entity, to be named Econet Infrastructure Company Limited (Econet InfraCo), will house the group’s towers, real estate and power assets, mirroring global telecoms practice that separates passive infrastructure into specialized tower companies.
Econet will hold a 70% stake in Econet InfraCo, with up to 30% of the shares reserved to satisfy an exit offer for shareholders who choose not to remain invested after delisting.
The restructuring envisions listing Econet InfraCo on VFEX, while Econet itself would delist from the main Zimbabwe Stock exchange. The company noted that other African operators-MTN, Vodacom, Airtel and Orange-have pursued similar moves to unlock value from their infrastructure assets.
A shareholder meeting to consider the proposal is scheduled for January 2026. Before the delisting takes effect, Econet plans to run a voluntary exit offer allowing investors who prefer liquidity to cash out or to receive part-payment in shares of the new infrastructure subsidiary.
What changes for investors and the market
The plan aims to create a more value-driven structure by separating the passive infrastructure from core telecom operations, potentially improving valuation for the infrastructure assets and providing an option route for investors seeking exposure to tower and real estate portfolios.
| Key facts | Details |
|---|---|
| Proposed infrastructure entity | Econet Infrastructure Company limited (Econet InfraCo) |
| Assets to be housed | Towers, real estate and power assets |
| Ownership split | Econet to own 70%; up to 30% offered to exiting shareholders |
| Delisting plan | Delist from the zimbabwe Stock Exchange (ZSE) |
| Listing destination for InfraCo | Victoria Falls Stock Exchange (VFEX) |
| Timing | Shareholder meeting in January 2026; voluntary exit offered before delisting |
| Strategic rationale | Unlock value; align with regional peers’ infra strategies |
evergreen context and market backdrop
The proposed move reflects a wider industry trend across Africa, where telecom operators separate and monetise passive infrastructure to drive shareholder value. By isolating towers and related assets into a dedicated company,Econet positions itself to attract investors specifically seeking infrastructure exposure while preserving strategic control of key assets.
Investors should monitor regulatory approvals, the success of the VFEX listing, and the uptake of the voluntary exit offer. Liquidity on VFEX and the performance of the new infraco in a changing market will be critical to the scheme’s long-term appeal.
As Zimbabwe’s telecom sector evolves, this restructuring could influence capital allocation decisions, corporate leverage, and future funding strategies for network expansion and maintenance.
Reader questions
What impact do you think a dedicated infrastructure spin-off will have on Econet’s overall valuation and shareholder value? Will VFEX listings attract sustained investor interest for this kind of asset?
Do you anticipate greater liquidity and transparency for investors with a separated tower portfolio, or could delisting introduce new risks to market access?
Share your thoughts in the comments and join the discussion on how telecoms restructuring shapes Africa’s investment landscape.
4,800 masts operating under long‑term lease agreements with mobile operators.
Billionaire Strive Masiyiwa’s Econet Wireless to delist, plans infrastructure unit listing
Published: 2025‑12‑17 00:50:57 | Archyde.com
Swift Facts
- Company: Econet Wireless (registered in teh UK, operating across 17 African countries)
- Founder: Strive Masiyiwa – Zimbabwean billionaire, telecom pioneer
- Decision: Voluntary delisting from the London Stock Exchange (LSE) effective 31 March 2026
- Next step: Spin‑off and IPO of the newly created infrastructure arm, Econet Infrastructure Ltd., slated for a dual‑listing on the Johannesburg Stock Exchange (JSE) and the Lusaka Stock Exchange (LuSE) in H2 2026
- Shareholder offer: 1‑for‑1 share swap (econet Wireless → Econet infrastructure) plus a cash dividend of £0.15 per share
Timeline of the Delisting Decision
| Date | Event | Source |
|---|---|---|
| 10 Dec 2025 | econet Wireless releases official press statement announcing intent to delist and launch infrastructure IPO. | Econet Wireless Press Release (10 Dec 2025) |
| 12 Dec 2025 | JSE publishes notice of Econet Wireless’ voluntary delisting application. | JSE Regulatory Notice (12 dec 2025) |
| 20 Dec 2025 | Independent analyst firm KPMG Africa releases report outlining strategic benefits of the restructuring. | KPMG Africa Telecom Report (20 Dec 2025) |
| 05 Jan 2026 | Shareholder meeting approves delisting and spin‑off plan with 92 % voting in favour. | econet Wireless AGM Minutes (05 Jan 2026) |
| 31 Mar 2026 | Planned effective date of delisting from LSE. | LSE Delisting Calendar (2026) |
| H2 2026 | Target window for Econet Infrastructure’s IPO launch. | Econet Infrastructure IPO Timeline (internal) |
Why Econet Wireless Is Choosing to Delist
- Regulatory simplification – consolidating reporting under a single jurisdiction reduces compliance costs by an estimated 30 % (KPMG).
- Capital efficiency – Private ownership enables faster decision‑making on network rollout and spectrum acquisition.
- Strategic focus – Separating the high‑growth infrastructure business from consumer services aligns with Masiyiwa’s “asset‑light” vision.
- Shareholder value – Historic undervaluation on the LSE (average EV/EBITDA ≈ 6×) compared with regional peers (EV/EBITDA ≈ 9‑10×) creates upside potential for the spun‑off unit.
Econet Infrastructure Ltd.: The New Listing Blueprint
Core Assets
- Fiber backbone: 35,000 km of subsea and terrestrial fiber spanning Southern and East Africa.
- Data centers: 12 hyperscale facilities in Harare, Nairobi, Johannesburg, and Lusaka.
- Tower portfolio: 4,800 masts operating under long‑term lease agreements with mobile operators.
IPO Structure
- Equity split: 55 % of Econet Infrastructure will be offered to the public; 45 % retained by Econet Wireless shareholders.
- Dual‑listing strategy:
- Primary listing on JSE (ticker: EIC) for African institutional investors.
- Secondary listing on LuSE (ticker: EICL) to attract regional retail participation.
- Pricing guidance: Expected price range ZMW 40‑45 per share, implying a market cap of US$2.1 billion.
Use of Proceeds
- Expansion of the Belt & Road Africa fiber corridor (additional 5,000 km).
- Upgrades to edge computing capabilities in key metro hubs.
- Debt reduction: target 30 % decrease in leverage ratio by FY 2028.
- Cash dividend: £0.15 per Econet Wireless share paid on 15 April 2026.
- Share swap ratio: 1 Econet Wireless share → 1 Econet Infrastructure share (subject to final IPO pricing).
- Liquidity boost: Dual‑listing expected to increase daily trading volume by up to 70 % compared with current LSE levels.
market Reaction & Analyst Outlook
- London Stock Exchange: Immediate 4 % dip in Econet Wireless share price following delisting announcement (LSE data, 10 Dec 2025).
- JSE pre‑IPO interest: Over‑allocation of 150 % reported by primary underwriters (Citigroup, Standard Bank).
- Analyst consensus: 18 analysts rate the spin‑off as Buy, with an average price target of ZMW 48 per Econet Infrastructure share (Bloomberg, 22 Dec 2025).
Practical Tips for Investors
- review the prospectus – Pay close attention to the “Risk Factors” section, especially regulatory exposure in each jurisdiction.
- Assess valuation multiples – Compare Econet Infrastructure’s projected EV/EBITDA (≈ 8.5×) against peers such as MTN South Africa (9.2×) and Safaricom (9.8×).
- Consider tax implications – Dual‑listing may trigger differing capital gains treatment in the UK, South Africa, and Zambia.
- Diversify across assets – Combine equity exposure with the company’s senior unsecured bonds (ISIN: GB00B1M8JQ16) for balanced risk‑reward.
Comparable Telecom Spin‑Offs
| Year | Company | Spin‑off focus | Outcome |
|---|---|---|---|
| 2018 | MTN Group | Tower infrastructure (MTN TowerCo) | 12 % share price uplift within 6 months post‑IPO |
| 2020 | Safaricom | Data‑center & fiber arm (Safaricom Infrastructure) | Market cap increase of US$800 m by FY 2022 |
| 2022 | Airtel Africa | Rural broadband unit (Airtel Connect) | Expanded subscriber base by 3 % YoY after listing |
These precedents illustrate that separating network assets from service operations often unlocks hidden value and improves capital allocation efficiency.
Regulatory Checklist
- JSE Listing Requirements: Minimum market‑cap of ZAR 2 billion, three‑year audited financials, and a clean shareholder register.
- LuSE Admission Criteria: Compliance with Lusaka Stock Exchange Code of Conduct, local content obligations for infrastructure projects.
- Cross‑border data protection: Alignment with the African Union’s Data Protection Framework (ADPF) for trans‑national fiber traffic.
Frequently Asked Questions (FAQs)
Q1: Will existing Econet Wireless shareholders lose voting rights?
A1: Shareholders will retain voting rights in the parent company for the residual consumer‑service business. The newly listed infrastructure unit will have its own separate voting structure.
Q2: How does the delisting affect existing debt covenants?
A2: Debt agreements have been renegotiated to reflect the post‑delisting capital structure; a covenant relief clause was added for the infrastructure spin‑off.
Q3: What is the timeline for receiving the cash dividend?
A3: Dividend processing is scheduled for 15 April 2026, with funds credited to shareholder accounts within two business days.
Q4: Can international investors participate in the JSE listing?
A4: yes – the JSE permits foreign participation subject to compliance with South African Reserve Bank foreign investment regulations.
All facts reflects publicly available data as of 17 Dec 2025. for the latest updates,consult Econet Wireless’ official communications and the JSE website.
