Press Announcement to Shareholders of Econet Wireless Zimbabwe Limited

By Published On: August 29th, 2023Categories: Corporate announcement

1. OPTION TO PAY IN LOCAL CURRENCY
Members are hereby advised that the Company has now obtained Exchange Control Approval for the Rights Offer to be made in United States Dollars. However, in terms of the Exchange Control Approval, members who are designated as Resident in the Register of Members of the Company as at the Record Date (the 1st of September 2023) (“the Resident Shareholders”), shall have an option to follow their rights in local currency (“ZWL”). The Conditions set out in paragraph 2 below shall apply to members following their rights in ZWL.

2. PRICING AND ACCEPTANCE OF RIGHTS
2.1 The final ZWL price for the shares shall be determined on the date that the company is allocated foreign currency on the interbank market for the purpose of redeeming the debentures in accordance with the Exchange Control laws of the Country.

2.2 Upon payment of a deposit in respect of each share, calculated by multiplying the US Dollar subscription price for each share by the prevailing interbank rate, plus a 10% margin, a subscribing member shall be issued and allotted each share to which the deposit relates as not fully paid and subject to a capital call and to the Company’s lien over shares issued but not fully paid for in terms of the Articles.

2.3 The capital call on the balance shall be made when the foreign currency has been secured and allocated to the Company, and the applicable Exchange Rate shall be the prevailing interbank rate plus a margin of 10%.

2.4 In the event of an exchange rate depreciation, interest shall be payable on the Zimbabwe Dollar balance of the subscription price calculated at the average rate at which Steward Bank Limited and Stanbic Bank Zimbabwe Limited would be lending to secured debtors with effect from the date the company is allocated foreign currency on the interbank market. The interest shall be deemed to be part of the balance of the subscription price and shall be part of the capital call.

2.5 In the event of an exchange rate appreciation, the shareholder will be refunded with the remaining Zimbabwe dollar without accruing any interest, after allocation of the foreign currency.

2.6 The attention of members is drawn to the provisions of the Articles relating to the issue and allotment of unpaid or not fully paid shares, the Company’s lien on such shares and the provisions relating to capital calls and the forfeiture of shares in the event of nonpayment.

3. PAYMENT
Resident shareholders who wish to pay in the local currency as outlined in paragraph 2 above can use bank details given below.

Bank : Steward Bank Limited
Account name : Econet Wireless Pvt Ltd Debenture Redemption
Account number : 1041615482
Branch : Avondale Branch
Currency : ZWL

 

4. FULFILMENT OF CONDITIONS PRECEDENT
By issuing this notice, the conditions precedent to the Rights Offer, as specified in the Circular, have all been fulfilled. Accordingly, the Rights Offer is unconditional and may now be implemented.

5. SALIENT DATES AND TIMES OF THE RIGHTS OFFER

The following timetable gives the final dates for the rights offer;

EVENT DATE
Press announcement giving the final dates for the Rights Offer Wednesday, 30 August 2023
Last day to register for the Rights Offer Friday, 1 September 2023
Securities listed ex rights Monday, 4 September 2023
Letters of Allocation Posted to shareholders registered for the Rights Offer Friday, 8 September 2023
Rights Offer opens
(Listing of and trading in the Letters of Allocation on the ZSE commence at 09:00)
Monday, 11 September 2023
Last day to trade Letters of Allocation on the ZSE (14h30) Wednesday, 27 September 2023
Securities subject to the rights offer are listed Thursday, 28 September 2023
Rights Offer closes at (14h30) Friday, 29 September 2023
Last day of postal Acceptance of the Rights Offer Wednesday, 4 October 2023
Results of Rights Offer announced Friday, 6 October 2023

 

6. HELP
If you have any questions relating to this announcement please contact the Group Company Secretary, Ms T.A. Ngowe on +263 77 122 2280 or via email on [email protected] or contact the transfer secretaries, First Transfer Secretaries on +263 86 8800 7319 or via email on [email protected]

By Order of the Board

T.A. Ngowe
Group Company Secretary

29 August 2023

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