Econet eyes London listing

Econet eyes London listing
Published: 27 November 2017 (941 Views)
AFRICAN telecommunications group 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, according to people familiar with the matter.

That valuation would be based on an enlarged company, partly forged through the acquisition of additional African phone businesses, said the people, who asked not to be named because the details are private. The plans have not been finalised and the  final valuation may change depending on market conditions.

Econet, founded by Zimbabwean phone tycoon Strive Masiyiwa, is in discussions with Millicom International Cellular SA to buy some African assets from the Luxembourg-based carrier, although no final decision has been made, one of the people said. Millicom, controlled by Sweden's Stenbeck family, 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, according to the people. The group, which is seeking to attract international investors is likely to use new funds for acquisitions, but no final decision has been made, the people said.

Econet declined to comment on the specifics of its plans but however said Masiyiwa has built substantial interests outside Zimbabwe in 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 an emailed response to questions.

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

Millicom spokesman Malcolm Fitzwilliams declined to comment, adding that its priority is to profitably and responsibly accelerate organic sales growth.

The company's stock declined 0.9 percent to 532 kronor at 2:24 pm in Stockholm.

Closely-held Econet, which has a listing in Zimbabwe of its wireless carrier, has interests in 17 countries, including South Africa, where it owns the largest domestic fibre company through Liquid Telecoms Group.

Earlier this year, it raised $700 million in bonds and loan financing that it will use to pay for the planned acquisitions and a purchase of South Africa's Neotel Pty Ltd.


- Bloomberg

 0

You May Like These Videos

Comments

There are no comments.

Latest stories

A tale of three vice presidents

by Tondorindo Chinehasha | 23 February 2018 | 97 Views

Nust Graduate wins beauty pageant

by Jefferson Metha | 23 February 2018 | 48 Views

It's time for rural cemeteries

by Thomas Murisa | 23 February 2018 | 74 Views

Mugabe warned: Shut up!

by Stephen Jakes | 23 February 2018 | 411 Views

2017 O-Level pass rate down to 26.35%

by Ndou Paul | 23 February 2018 | 149 Views

The mystery of the missing MDC-T constitution

by Joe Devanny | 23 February 2018 | 96 Views

Khupe snubs Chamisa overture

by Staff reporter | 23 February 2018 | 202 Views

Mutambara warn MDC-T members

by Staff reporter | 23 February 2018 | 339 Views

Jonathan Moyo taunts 'hopeless charlatan'

by Staff reporter | 23 February 2018 | 218 Views

Cheated wife cuts off man's sex organs

by Punch.com | 23 February 2018 | 102 Views

Cheating man in juju scare

by Staff reporter | 23 February 2018 | 132 Views

Headmaster, wife demand $145,000 from school

by Staff reporter | 23 February 2018 | 110 Views

Woman faces $10 000 adultery lawsuit

by Staff reporter | 23 February 2018 | 77 Views

Chamisa salutes Mnangagwa's govt

by Staff reporter | 23 February 2018 | 138 Views

Chamisa blasts the police force

by Simbarashe Sithole | 23 February 2018 | 565 Views

The social media president

by Charles Munganasa | 23 February 2018 | 81 Views

Four incredible gambling stories

by Agencies | 23 February 2018 | 64 Views

Reckless behaviour cost lives - PDP

by Jacob Mafume | 23 February 2018 | 77 Views

Tapping into diaspora remittances for growth

by Victor Bhoroma | 23 February 2018 | 67 Views

Zimbabwe's pricing dilemma

by Victor Bhoroma | 23 February 2018 | 68 Views

Chamisa blast the police force

by Simbarashe Sithole | 23 February 2018 | 257 Views

MDC-T drama: We have learnt very little about the past 37 years

by Hopewell Chin'ono | 23 February 2018 | 108 Views

Grace Mugabe is being harrassed, says Mugabe

by Staff reporter | 23 February 2018 | 229 Views

Ramaphosa forgives Peter Ndoro for 'killing' him

by BBC | 23 February 2018 | 163 Views

South Sudan to hang former South African colonel

by BBC | 23 February 2018 | 128 Views

British couple kidnapped in South Africa

by AFP | 23 February 2018 | 107 Views

Zim revives fuel pipeline deal with Botswana

by Staff reporter | 23 February 2018 | 86 Views

Fresh row over command agriculture

by Staff reporter | 23 February 2018 | 86 Views

MDC-T succession war, violence and tribalism

by MUCKRAKER Twitter: @MuckrakerZim | 23 February 2018 | 92 Views

MDC-T violence simply barbaric, unacceptable

by Faith Zaba | 23 February 2018 | 59 Views

Mudzuri seeks legal opinion

by Staff reporter | 23 February 2018 | 168 Views

Chamisa digs in

by Staff reporter | 23 February 2018 | 152 Views

MDC-T succession battles more political than constitutional

by Staff reporter | 23 February 2018 | 71 Views

Mugabe says, 'Mnangagwa government is illegal'

by Staff reporter | 23 February 2018 | 510 Views

'Lacoste cabal' has captured MDC-T

by Staff reporter | 23 February 2018 | 126 Views

What ZRP had to say about yesterday's shooting and riots

by Staff reporter | 23 February 2018 | 116 Views

'How G40's power-grab plan collapsed'

by Staff reporter | 23 February 2018 | 126 Views

Looting at Tsvangirai's burial

by Staff reporter | 23 February 2018 | 140 Views