Econet Reconciles Rights Offer Shares

Econet Wireless has begun the process collecting the $100 million raised from the  Rights Offer to allocate shares to shareholders. 

In a Rights Offer update , the company said the process is well on course.

“The process of reconciling the proceeds from the Rights Offer to allocate shares and linked debentures to the participating shareholders is currently underway,” said Econet.

Econet said they opened two separate bank accounts for local and foreign shareholders.

“Pursuant to the Rights Offer, the Company opened two local Receiving Bank accounts into which those shareholders designated as Resident Shareholders in the Register of Members at the record date could deposit their contributions to the Rights Offer.

“ This resulted in the need to reconcile the local and the foreign register separately, in order to ensure that each shareholder subscribes in the manner determined by their residence status, in line with the Exchange Control Approvals granted,” said the telecommunications giant.

Added Econet, “This process was required to ensure that the principles of the Exchange Control approvals granted by the Reserve Bank of Zimbabwe, to allow the resident shareholders to participate using the local receiving accounts, are not contravened.”

In the meantime, Econet has moved the announcement dates on the update of the rights issue further as shown in the image below.

Econet Rights Offer Announcement Dates

Econet Wireless Zimbabwe’s $130 million rights issue was undersubscribed by over 75 percent, mirroring the depth of the country’s liquidity crunch, with the nderwriter pumping in $100 million,Econet Wireless Global, EWZ’s major shareholder with a 35 percent stake, underwrote the rights issue and its investment would significantly raise its shareholding in Zimbabwe’s largest communications network.

EWZ sought to raise possibly the biggest ever local capital raise — and in Africa outside of South Africa — through the highly contentious rights issue to pay off foreign loans which was opposed by regulators, the Zimbabwe Stock Exchange and the Security Exchanges Commission.

 

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