ECONET TO SEEK SHARE REVERSAL SPLIT
ECONET Wireless Holdings Limited will be seeking shareholder approval at its forthcoming annual general meeting, slated for October 28, for a share reversal split of a maximum of 10 percent of the issued owners' equity.
The telecommunications group said it would repurchase its shares at a price not lower than the nominal value of $100 per share but not higher than 12 times the inflation adjusted net value per share.
That, however, would be subject to the shares being purchased at a price not greater than 5 percent of the weighted average cost of the stocks traded during five business days immediately preceding the AGM.
Econet said the share reversal split would be carried out as an ordinary resolution at the group's AGM.
Most Zimbabwe Stock Exchange-listed companies have resorted to share reversal splits as part of measures to reduce the number of shares in issue. As part of the ordinary resolution Econet would also be seeking shareholder endorsement for a dividend of $709,20 per share.
Furthermore, the company wants to create a capital redemption reserve out of the revenue reserves registered in the books of the company from time to time. If approved, this authority would be binding until the next AGM.
"The company is in a strong financial position and will, in the ordinary course of business, be able to pay its debts for a period of 12 months after the annual general meeting.
"The assets of the company will be in excess of its liabilities for a period of 12 months after the annual general meeting. The ordinary capital and reserves of the company will be adequate for a period of 12 months after the annual general meeting," said Econet in a statement to shareholders.