Results of the Econet Rights issue to be released tomorrow

Results of the controversial $130 million Econet Wireless rights issue which opened on 20 February and closed on 10 March will be released tomorrow.

The rights issue was mired in controversy because Econet initially wanted investors to pay for the shares in foreign currency.

Reports also said the rights issue had not gone through the right channels of the Zimbabwe Stock Exchange.

Although the company said it wanted to raise $130 million to pay off its debts, questions were raised about this because the bulk of the debt, some $75 million was only due in two years.

The Insider argued that the way the rights issue was being handled was reminiscent of a similar deal in 2003 when Econet founder and chairman Strive Masiyiwa wanted to increase his shareholding.

Tomorrow’s results will show whether this was true or not.

Currently the top shareholders are:

• Econet Wireless Global Limited                                                                  30.2 percent
• Stanbic Nominees (Private) Limited (NNR)                                           18.58 percent
• Econet Wireless Zimbabwe Limited                                                         9.86 percent
• Stanbic Nominees (Private) Limited                                                         6.76 percent
• Austin Eco Holdings Limited-NNR                                                              5.48 percent
• Old Mutual Life Assurance Company of Zimbabwe Limited           5.07 percent
• Econet Wireless Zimbabwe SPV Limited                                                                2.96 percent

See also:

Zimbabwe Stock Exchange orders Econet to postpone extraordinary general meeting

Econet defies Zimbabwe Stock Exchange and goes ahead with extraordinary general meeting

Econet rights issue gets nod

What is Strive Masiyiwa up to?

Is the Econet Rights offer really about paying off its debt or something else?

Who is really bailing out Econet Zimbabwe?

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