Econet Zim Market Capitalisation US$666,49 million Up 86%

Econet Wireless Zimbabwe Limited (EWZL) which is set to acquire 6 EcoCash’s fintech firms as of yesterday, has seen EWZL’s market capitalisation at US$666,49 million from the end of last year, an increase of nearly 86%.

The EWZL’s purchase of non-banking assets from EHZL could see the latter’s market capitalisation declining significantly as it was valued at US$168,43 million as of yesterday.

EWZL had split and created EHZL to unlock shareholder value after which comes six years after the acquisition.

Econet said EcoCash’s financial technology business would be under its wings in a statement.

“Further to the cautionary announcement dated 16 January 2024, shareholders are advised that Econet Wireless Zimbabwe Limited and EcoCash Holdings Zimbabwe Limited, being companies under the same control, are engaged in negotiations that may result in the transfer to Econet of the following financial technology businesses: EcoCash (Private) Limited, VAYA Technologies Zimbabwe (Private) Limited, Econet Insurance (Private) Limited, Econet Life (Private) Limited, MARS Zimbabwe (Private) Limited, and Maisha Health Fund (Private) Limited in exchange for Econet shares that may be distributed to the EcoCash Holdings Limited Shareholders on pro rata basis,” EWZL said in the statement.

Econet Wireless Zimbabwe Limited will therefore acquire six non-bank assets of EcoCash Holdings Zimbabwe Limited (EHZL) as it seeks to diversify its business.

These two companies announced last month that EcoCash’s non-bank assets would be transferred to Econet in return for the telecom firm’s shares.