8 Comments
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Tatenda Nyawata's avatar

Regarding the options for minority shareholders, they can also reject the proposal. According to the listing rules 75% of minority shareholders have to approve the delisting( this excludes the econet block shares and spv because they are controlling shareholders)

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Tinashe Mukogo's avatar

Thanks. I was not aware of that specific provision. It's actually quite a powerful one.

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Christopher Chitemerere's avatar

Multiples like P/E ratio or EV/EBDTA are not comparable across boarders

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Tinashe Mukogo's avatar

Thans for the comment.

I think they can be compared with some adjustments e.g. the Zimbabwe discount.

It's not perfect as any valuation measures but it can give some context.

A number of qualitative factors as well would point to the fact that Econet is overvalued.

Perhaps it will be worth a follow up.

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Tavonga Njaya's avatar

It's a balanced take, as there are a lot of moving pieces. Thank you for this, Tinashe! However, one can't help but have that gut feeling that staying (even increasing exposure) in Econet post-delisting might be that once-in-a-lifetime moment to ride the wave

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Phillip Chambati's avatar

Thanks for the article Tinashe. It is going to be very interesting how this develops. There are just so many questions. One would ask why carve out a section and list that on the VFX and not the whole like other companies did?

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Gugulethu Nunu's avatar

We could speculate but now is not the time…… The answer will unfold in the next 2 years

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Phillip Chambati's avatar

Isn't speculation where the money is? If you get it right now you can be in the money. You wait two years and you miss the boat. You are right though, more information is needed and the moving parts are still in motion and area multitude.

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