Econet Tries To Secure Share Buy-Back Approval To Repay Debts
Zimbabwe's telco Econet Wireless wants to secure shareholder approval for a share buy-back scheme and the placement of unissued shares under the management of directors at the company's upcoming AGM on 24 September 2019.
In a letter to shareholders this week, Econet's Company Secretary Charles Banda said that the share buy-back revenue would help the company pay off its debt.
Another resolution that Econet will be being pursuing at the AGM is that the authorised but unissued shares of the business be placed under the control of Directors who will issue them as they see fit.
In June this year, Econet said it had long and short term interest-bearing liabilities amounting to millions of dollars.
The Zimbabwean telco's notice to shareholders also highlighted that under a special business, the share buy-back scheme would be taken-up in line with an authorisation that is provided for under Article 10 of the company's Articles of Association. This would mandate the firm to undertake the purchase of its own shares in such manner as the Directors might determine, provided that the repurchases are not made at a price that is greater than 5% above the determined average of the market value for the securities.
Credit: This article originated from www.itwebafrica.com