Econet seeks UK listing

LEADING Zimbabwean telecommunications firm Econet is considering selling shares on the London Stock Exchange at a valuation of about $8 billion next year after combining new and existing assets, international news agency the Bloomberg has reported.

According to the report, valuation would be based on an enlarged company, partly forged through the acquisition of additional African phone businesses.

The report said plans had not been finalised and the final valuation might change depending on market conditions.

The Bloomberg reported that Econet was in discussions with Millicom International Cellular SA to buy some African assets from the Luxembourg-based carrier, although no final decision had been made.

Swedish Stenbeck family controlled Millicom is scaling back in Africa to focus on Latin America. Its holdings in Tanzania, Chad, Ghana and Rwanda serve some 25 million users, which would complement Econet’s operations in Zimbabwe and South Africa.

“Econet plans to sell about $1 billion in new shares in an initial public offering in London and may consider a secondary listing in Johannesburg. The group, which is seeking to attract international investors, is likely to use new funds for acquisitions, but no final decision has been made,” it said.

Econet declined to comment on the specifics of its plans, saying owner Strive Masiyiwa had built substantial interests outside Zimbabwe in the telecommunications, media, and financial services in the 18 years since he left the country.

“We are working to streamline these into a vehicle which can be listed,” the company said in emailed response to questions.

“At the moment, Econet considers it premature to discuss further, but will provide further clarity should the listing proceed.”

According to the Bloomberg, Millicom spokesman Malcolm Fitzwilliams declined to comment, saying its priority was to profitably and responsibly accelerate organic sales growth. — New Ziana.