Econet Wireless Zimbabwe Limited – Announcement Results of Rights Issue

By Published On: October 6th, 2023Categories: Corporate announcement

This Announcement relates to the renounceable rights issue (the “Rights Issue”) of 401,586,371 ordinary shares at a subscription price of US$0.0755 per each share, on the basis of 17.122 ordinary shares for every 100 shares already held, to raise US$30.3 million that has just closed.

The Company wishes to thank Shareholders for demonstrating their support for the Company by participating in the Rights Issue that has just closed.

1 RESULTS OF THE RIGHTS ISSUE

The Rights Offer closed on 29 September 2023. The following are the results of the Rights Offer:

Description Number of shares Principal amount
of Rights (US$)
% of Rights Offer
shares
Rights offer shares available for subscription 401,586,371 30,319,771.01 100.00%
Subscription in foreign currency (US$) / debentures 225,516,397 17,026,487.96 56.16%
Subscription in local currency (ZWL) 1,802,796 136,111.07 0.45%
Underwriter 174,267,179 13,157,171.98 43.39%
Total rights offer shares subscribed for 401,586,371 30,319,771.01 100.00%

 

2 SHAREHOLDING STRUCTURE OF THE COMPANY

To the best of the Directors’ knowledge, information and belief after having made all reasonable enquiries, for illustrative purposes, the shareholding structure of the Company immediately before and after completion of the Rights Issue is set out below:

  Account Name Before Rights Offer After Rights Offer
Ordinary shares % of Shares Ordinary shares % of Shares
1 Econet Global Limited 995,384,301 38.42% 1,165,814,001 38.96%
2 Stanbic Nominees P/L 336,188,749 12.98% 350,060,582 11.70%
3 Stanbic Nominees P/L (NNR) 250,605,864 9.67% 250,605,864 8.38%
4 TN Asset Management Nominees 210,433,619 8.12% 210,433,619 7.03%
5 Econet Wireless Zimbabwe SPV Limited 129,528,841 5.00% 151,706,769 5.07%
6 Old Mutual Life Assurance Company Of Zimbabwe Limited 118,270,809 4.57% 118,270,809 3.95%
7 New Arx Trust (NNR) 92,799,146 3.58% 92,799,146 3.10%
8 Austin Eco Holdings Limited – NNR 53,923,476 2.08% 63,156,254 2.11%
9 Standard Chartered Nominees (Private) Limited 29,146,600 1.13% 29,361,909 0.98%
10 Northunderland Investments (Private) Limited 24,236,090 0.94% 24,236,090 0.81%
Other 350,059,337 13.51% 361,450,981 12.09%
Underwriter 174,267,179 5.82%
Total 2,590,576,832 100.00% 2,992,163,203 100.00%

 

3 USE OF PROCEEDS

As disclosed in the rights offer circular, the Company intends to apply the net proceeds from the Rights Issue to redeem its portion of the amount that is due to debenture holders in terms of the Debenture Trust Deed that was executed by the Company and the Debenture Trustees on 18 January 2017 and registered with the Registrar of Deeds on 25 January 2017 as Number MA0000089/2017 and amended on 12 June 2019 as Number MA0001295/2019.

4 REFUND FOR INVALID OR UNSUCCESSFUL ACCEPTANCES AND EXCESS APPLICATIONS

Monies accompanying invalid or unsuccessful acceptances for Rights Shares will be refunded, without interest or any share of revenue or other benefit arising therefrom, within three (3) business days after the date of commencement of trading of the Rights Shares.

5 COMMENCEMENT OF DEALINGS IN THE RIGHTS SHARES

5.1 Dealings in the Rights Shares, in their fully-paid form for those who subscribed in foreign currency or debentures, are expected to commence on the Zimbabwe Stock Exchange at 9:00 a.m. on Monday, 9 October 2023.

5.2 Dealings in the Rights Shares for those who subscribed in Local Currency as not fully paid shares, are expected to commence on the Zimbabwe Stock Exchange at 9:00 a.m. on Monday, 9 October 2023. These shares will be marked as not fully paid until the company is allocated foreign currency in accordance with announcement dated 29 August 2023.

By Order of the Board

T.A. Ngowe
Group Company Secretary

4 October 2023


Econet Results of Rights Issue 5 Oct 2023.pdf

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