On The Money - In Brief

Mergers, Acquisitions and Financial Results

- Egyptian cellular telephone company MobiNil said on last week it would pay a special dividend of 4.88 Egyptian pounds ($0.79) per share from retained earnings.

- Econet’s market price has declined by some 40% since the approval from shareholders to acquire the 14% stake in Mascom. According to Kingdom Stockbrokers, this downgrading appears to be based on sentiment rather than fundamentals, and whilst acknowledging that Zimbabwe dollar tariffs are very low compared to regional telecomms operators, a historic PE ratio of approximately 5 would seem to significantly underrate Econet in this hyperinflationary environment.

- A new IT firm, Virus Support Network (VSN) Zimbabwe (Pvt) Ltd could be listed on the Zimbabwe Stock Exchange (ZSE) sometime next year.