Published by the government of Zimbabwe
7 October 2009
Harare — ECONET has reduced to 20 percent its stake in Afre Corporation after selling five percent in a drive to dispose of all non-telecommunication assets.
The mobile phone operator, through a vehicle Econet Global Holdings also recently sold its 10 percent stake in troubled Kingdom Meikles Limited.
Econet board announced in March this year that it would sell its interests in non-core businesses.
Company spokesperson Mr Ranga Mberi recently confirmed the transaction but, however, would not reveal who had acquired the shares.
Meanwhile, BCA Consulting, the investigators into the allegations of externalisation by the specified Kingdom Meikles Limited will examine the legality of the recent disposal of Econet shares in the company.
This comes as questions have been raised on the legality of disposal of Econet shares in the company, also suspended from trading on the Zimbabwe Stock Exchange pending investigations.
Co-investigator Mr Budhama Chikami said on Monday: "We learnt about this transaction through the media and we are actually looking at its legality."
However, some legal experts have said there was nothing wrong with the transaction.
A top lawyer said sub Section 9 of Section 10 of Prevention of Corruption Act says a specified company can carry on with ordinary business.
"Through the Act, the specification does not affect the right of shareholders to do whatever they want with their shares unless if the shareholders are also specified."
In a statement issued to the market last Thursday, the company announced that it had sold its 24 537 480 KMAL shares at US$0,71 per share, which is a premium of 29 percent on the closing price of US$0,55 before suspension.
The company said the $17 million from the sale would be directed towards network expansion.
A consortium led by businessman Mr Rugare Chidembo acquired the shares after agreeing undisclosed terms of payment with Econet.
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