Econet InfraCo Restructuring: Econet Wireless Completes Transfer of Infrastructure Assets to New Subsidiary
Econet InfraCo Restructuring marks a significant milestone for Econet Wireless Zimbabwe Limited (Econet) as the company has successfully completed a comprehensive corporate reorganisation. This strategic move consolidates the Group’s real estate and passive telecommunications infrastructure into a dedicated wholly owned subsidiary named Distributed Power Africa (Private) Limited, trading as Econet InfraCo.
The assets transferred to Econet InfraCo encompass immovable properties and passive network infrastructure previously managed by Econet Wireless (Private) Limited and other wholly owned special purpose vehicles within the Group. This transfer occurred as a going concern transaction, preserving full ownership and operational control within the Group. All existing rights, obligations, and commercial agreements remain unchanged, ensuring seamless continuity.
Econet InfraCo Restructuring aligns with international best practices in the telecommunications sector by rationalising the ownership structure of infrastructure and real estate assets. This approach enhances operational efficiency and clarifies asset management. Any assets still registered under Econet or other special purpose vehicles are held nominally or in trust for Econet InfraCo, which serves as the beneficial owner. Stakeholders can rest assured that this Econet InfraCo Restructuring will cause no disruption to services, access, or the performance of any contractual obligations.
Looking forward, Econet plans to pursue delisting from the Zimbabwe Stock Exchange, subject to necessary shareholder and regulatory approvals. As part of this process, the Group intends to allocate up to 30 percent of Econet InfraCo shares as compensation for shareholders opting to exit during delisting. The remaining 70 percent will continue to be held by the Group. All distributions and related steps will proceed following formal engagements with the relevant authorities.
