Econet Declares $50 million dividend

Zimbabwe’s largest telecommunication company, Econet Wireless on Wednesday announced a dividend amounting to $50 million for the nine months ended November 30, 2017.

As at June last year, the southern African company had a backlog of $75 million in dividends and proceeds from sales that are owed to foreign investors.

“Foreign shareholders should appoint or make their own arrangements with a local bank of their choice to receive dividend on their behalf and to facilitate remittance to them,” said company secretary Charles Banda in a notice.

The company declared a dividend of 0.9379 US cents per share for the third quarter ended 30 November 2017.

“The total dividend declared for the nine months ended 30 November 2017 now stands at US$ 50 million, equivalent to 1.9029 cents per share,” said Banda.

The company posted 17 percent growth in revenue to $353 million with profit amounting to $49 million in the six months to August 31, 2017.

Shareholders will receive their dividend in March and foreign shareholders payments will be subject to exchange control approval and payment guidelines for foreign remittances.

However but local companies have struggled to repatriate dividends to shareholders outside the country due to a biting hard currency crunch.

Major shareholders of Econet are Econet Wireless Global, Stanbic Nominees and Econet Wireless Zimbabwe, with a shareholding of 30,02 percent, 17,23 percent and 13,19 percent respectively.

This article first appeared on The Source

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