Econet Wireless Global raises stake in Econet Zimbabwe to 40 percent

The rights issue generated some controversy largely due to its initial requirement that shareholders pay abroad to subscribe, a move that analysts say would have disadvantaged pension funds and other minorities who would not be able to make offshore payments to follow their rights.

Econet dropped that proposal and created a facility to enable local payments.

Officials said the proposal was an appeal to its shareholders with access to foreign currency outside the country.

The company has enough money to pay off the creditors, but local banks were failing to make the transfers due to depleted nostro accounts, they added.

Econet Wireless Global had also offered other shareholders foreign currency loans so they can follow their rights, they said.

But hard-up Zimbabwean minorities have, in recent years, struggled to follow their rights in similar transactions.

The company traded at 17.45 cents today, 0.29 percent higher from the previous day.

Econet founder Strive Masiyiwa left Zimbabwe in 2000, two years after Econet was awarded an operating licence following a protracted legal battle with the government. He has never been back since.

Moving first to South Africa and later the United Kingdom, where he has lived in London for the last 10 years and has business interest throughout the world.- The Source

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