Econet dangles $3,2bn jackpot to shareholders

Shareholders in Econet Wireless, who held shares before November 22, 2018 and still have them, will receive their own share of a $3,2 billion bonanza on Tuesday.

This is when Cassava SmarTech Zimbabwe Limited - the holding company of EcoCash - will start trading on the Zimbabwe Stock Exchange as an independent company.

The "spin-off" of Cassava SmarTech, which also houses EcoSure, Steward Bank, Kwese Iflix, EcoFarmer, Vaya and the eCommerce platform Ownai, has unlocked the greatest value in the history of stock trading in Zimbabwe, with one leading international research analyst saying it could be worth well above $3,2 billion upon listing.

African Alliance, an international research firm, said Cassava's $200 million earnings (EBITDA) should be multiplied by 16 to 18 times to establish its actual valuation, based on global comparisons of this type of business.

Cassava Zimbabwe's earnings are projected to exceed $200 million for the company's full year ending February 28, 2019.

This places Cassava Zimbabwe in the top three listed companies in Zimbabwe with analysts saying Cassava was growing faster than both Econet Wireless and Delta Corporation. The free share distribution will take place tomorrow, and shareholders will be able to buy and sell shares from Tuesday onwards.