Zimbabwe Investor Buys Econet Shares At a Bargain

Mergers, Acquisitions and Financial Results

An investor bought 256 451 Econet shares worth US$1,3 million on Monday at a special bargain price of US480c -- representing a US10c premium.

The parcel becomes the third Econet transaction in less than four weeks -- as investors' appetite for the mobile phone operator continues to grow.

Econet Wireless has continued to attract huge foreign buying appetite as international investors pumped in US$1,2 million into the market on Wednesday.

The 244 917 shares exchanged hands at a stable price of US$480c.

The transaction helped foreign inflows rise 12,73 percent to US$1,3 million as foreign investors dominated the day's trades at 61 percent of market turnover.
The special bargain represented about 56 percent of overall turnover, which surged 43,38 percent after an improved price of US65,01c in Delta, which saw total turnover closing at U$S$2,4 million.

Delta actually set yet another high after surging 1,58 percent to US65,01c.

Stocks on the Zimbabwe Stock Exchange opened the week trading in the red with trades tilted towards Econet and the beverage and alcohol maker Delta, accounting for the biggest chunk of transactions, at 92,5 percent.

The mainstream index opened at 152,69 points shedding off 0,47 percent and the resources index was pulled 1,7 percent down by losses in Hwange to 230,99 points.

Trust and TPH were the biggest gainers of the day after adding 8,33 percent apiece to US1,3c and US6,5c respectively.

Ariston, after publishing a fair set of results, added 7,14 percent to US1,5c while Turnall added the same to end at US6c respectively.

Leading the market rout was Star Africa which retreated 14,3 percent to US6c while NMBZ and Meikles followed, having shed identical 9,1 percent to US1c and US50c.

Meanwhile, Econet said it now has over five million subscribers, accounting for the largest number of lines sold in the country.

He said demand for new lines remained strong, but the company was currently managing to sell all the lines being released onto the market.

"Econet continues to account for the majority of all lines sold in the market," said Mr Mboweni.

"The increase in the subscriber base has been made possible by the ongoing network expansion."

He also said Econet now has over 400 000 customers who have connected to the three products being offered under Econet Broadband launched in October.

"Work on the fibre optic network has been completed, and the network has a direct connection to the Seacom cable in Durban, South Africa," said Mr Mboweni.

Through its parent company, Econet Wireless Group, Econet Wireless Zimbabwe also has dedicated capacity on Seacom cable, ensuring its customers do not have to go through the networks of third parties.