So as we have already reported in an earlier article: Econet is going ahead with its demerger. The process is quite technical and we are here to do the hand holding. Nothing says simple like a picture so below are diagrams showing exactily what is going to happen to Econet.The de-merger is a multi-step process but the diagrams.
Before we begin here are a few things to note
- When we say Econet we are referring to Econet Wireless Zimbabwe Ltd (EWZL) which is listed on the Zimbabwe Stock Exchange
- This entity has various subsidiaries (i.e. wholely separate companies) it owns and controls for example Ecocash and a little confusing Econet Wireless ( the guys that sold you your Econet phone line)
- The company trading as Liquid Telecoms Zimbabwe (LTZ) is actually called Data Control and Systems (1996), it was also known Ecoweb and Ulimited Internet before that
What the Econet Wireless Limited Zimbabwe group looks like now
- Above is the structure of Econet Wireless Zimbabwe Limited in All its glory
- Unless explicitly stated EWZL has 100% of the subsidiary named
Econet After the Demerger
- This is what EWZL will be like after going forward with the demerger
- Though technically not part of the demerger, EWZL is going to sell its entire stake in Data Control and Systems (1996) to Liquid Telecoms Holdings (LTH) in return for 10% stake in LTH
Wait where are Ecocash and Ecosure?
They are now part of a new company called Cassava Smartech Zimbabwe Limited
- This new entity will be listed separately on the Zimbabwe Stock Exchange
- EWZL shareholders will receive commensurate shareholding in the new separate entity that is equivalent to their current shareholding