Econet Wireless Zimbabwe Limited has announced plans to pursue a voluntary delisting from the Zimbabwe Stock Exchange, subject to shareholder approval, as the company seeks to unlock shareholder value.
The decision follows a cautionary statement issued in December 2025. Econet's board said the company's shares have traded for several years at a discount to comparable African telecom operators, which typically trade at enterprise value to EBITDA multiples of about six to eight times.
The board attributed part of the valuation gap to Econet's ownership of towers and other passive infrastructure assets, which have remained within the operating company rather than being housed in a separate infrastructure vehicle.
To address this, Econet has created Econet Infrastructure Company Limited, which will hold the group's real estate, tower, and power assets. Econet plans to list the infrastructure unit on the Victoria Falls Stock Exchange by way of introduction.
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As part of the delisting, Econet will extend a voluntary exit offer to shareholders who prefer not to remain invested in an unlisted company. The offer will be settled using a mix of cash and shares in Econet InfraCo. Econet will retain a seventy percent stake in the new entity.
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Key Takeaways
The move reflects a broader shift among African telecom operators toward separating infrastructure assets from core network operations. Towers, power systems, and real estate often carry different risk and return profiles from mobile services and can attract higher valuations when held in dedicated vehicles. Listing Econet InfraCo on the VFEX allows the group to present these assets in a USD-based market that is more aligned with global infrastructure benchmarks. This structure may also appeal to investors focused on stable, long-term cash flows rather than operating risk. For Econet, the delisting provides flexibility to restructure without the constraints of a public listing, while still offering liquidity through the infrastructure spinout. Retaining a majority stake preserves control over strategic assets while enabling partial value realisation. The transaction also highlights challenges faced by listed companies in smaller markets, where valuations can lag peers despite similar operating fundamentals. Asset separation and alternative listings are increasingly used to bridge this gap. If approved, the move could set a precedent for other Zimbabwean and regional companies seeking valuation clarity through structural change rather than continued public trading.
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