Econet Reaches For Stability, Pins Hope On Share Buy-Back Programme
Zimbabwe's Econet Wireless is said to be initiating a share buy-back scheme that will be geared to helping it stabilise its finances and continue to meet its financial obligation.
Sources from inside the company indicated that management had listed the share buy-back scheme as the number one agenda item at the company's next month's virtual annual general meeting (AGM). It is reported that the management will be seeking shareholders approval for the scheme, which they are confident will put Econet in the position where it can pay off its debt obligation and retail "adequate equity reserves".
It is to be recalled that Econet Wireless reportedly entered what was described as "financial uncertainties" when it decided to shift its accounting currency from US Dollar to the Zimbabwean Dollar, which also means a shift of the company's debenture matrix. This, of course, have put subsequently impacted local shareholders negatively.
Aside from the internal financial accounting shenanigans, Econet has also seen its revenues come under downward pressures because of the impact of Covid-19 pandemic trading conditions with its average revenue per user (ARPU) declining by more than 50 per cent between 2019 and 2020.