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
My worry here is the growth prospects of InfraCo, there are few possible new clients in the space, Econet had been struggling to update and capitalise assets, and the possible clients that do exist (netone & telecel) are teetering on corporate rescue... Money might meet friction.
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?
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)
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.
Man, the ZSE looks to be in trouble. And given where the currency situation is going I'm not sure if even allowing shares to be bought in US$ would move the needle. And this is before considering that they would be duplicating the work of the VFEX by going down that path. Will be interesting to see how they evolve
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
It could be. It just a little more unpredictable in that if you do want to sell at some point it will not be very easy.
I will dive deep into this analysis of the capital markets , just realized that I've been missing on something.
My worry here is the growth prospects of InfraCo, there are few possible new clients in the space, Econet had been struggling to update and capitalise assets, and the possible clients that do exist (netone & telecel) are teetering on corporate rescue... Money might meet friction.
Good points. It will be interesting to see how the valuation gets done.
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?
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)
Thanks. I was not aware of that specific provision. It's actually quite a powerful one.
Multiples like P/E ratio or EV/EBDTA are not comparable across boarders
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.
We could speculate but now is not the time…… The answer will unfold in the next 2 years
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.
Man, the ZSE looks to be in trouble. And given where the currency situation is going I'm not sure if even allowing shares to be bought in US$ would move the needle. And this is before considering that they would be duplicating the work of the VFEX by going down that path. Will be interesting to see how they evolve