ZSE sent CEO on leave over Econet saga

The Zimbabwe Stock Exchange (ZSE) yesterday sent its CEO Alban Chirume on an indefinite leave to pave way for investigations after Econet Wireless Zimbabwe disregarded a directive from the regulator not to hold an extraordinary general meeting.

In defying the ZSE directive, Econet said it was authorised to do so by a committee of the board. The EGM was held on Friday where shareholders approved a $130 million cash call to pay foreign obligations.

ZSE board chairman Caroline Sandura told NewsDay last night, "We have sent him on indefinite leave to investigate what has been happening."

ZSE senior operations executive Martin Matanda will be the acting CEO. The decision to send Chirume on forced leave came after board members had caucused following last week's embarrassment in which its directive was ignored. Chirume has been CEO since May 2013.

It could not be established what action would be taken against Econet.

A source told NewsDay on Friday the ZSE board was miffed by the open defiance and would crack the whip.

"We will take the necessary steps required. We don't want some people to give themselves certain powers," a board member said.

"Our concern was for Econet to follow the correct processes and not prejudice any section of the market."

In terms of the rights offer, shareholders shall be offered, pro rata to their shareholdings, 1 082 088 944 ordinary shares plus 263 050 614 Class A shares at a subscription price of five cents each on the basis of about 82 ordinary shares for every 100 shares already held.

Each rights offer share shall be linked to a debenture with an issue price of 4.665 cents each and, a coupon rate of 5% per annum, thus, giving a redemption value of 6,252 cents each.

The amount due on both the shares and the linked debentures shall be payable in full on acceptance of the offer.