Econet Wireless Zimbabwe Limited, the telecommunications unit of South Africa (SA)-based Econet Wireless, has announced plans to purchase stakes in Mauritius-based peer Liquid Telecommunications Holdings Limited.
Econet Wireless Zimbabwe offers to exchange the 51 percent stake, valued at $135 million, it has in Data Control and Systems Limited, which operates under the trade name Liquid Telecommunications Zimbabwe, for stakes in Liquid Telecommunications Holdings Limited.
Econet Wireless Zimbabwe also offers to convert 1.1 billion debenture bonds it issued into ordinary shares on the basis of 93.3 ordinary shares for 100 debenture bonds. In addition, Econet Wireless Zimbabwe suggests separation of its mobile network exploitation activities from the technology part.
A new company will thus be created. Named Cassava SmarTech Zimbabwe Limited, EcoCash, Econet Life, and Steward Bank will be fully transferred to it and 90 percent of Econet Insurance will fall under its wing freely before free issuance of 2.6 billion shares to holders in proportion to their equity.