MOBILE Telecommunications giant Econet Wireless Zimbabwe says it is intensifying its focus on strategies that preserve shareholder value owing to the prevailing economic environment.
In a statement accompanying the company’s financial results for the year ended February 2019, Econet Zimbabwe chairman James Myers said the strategy is to achieve the intended results in the current economic situation.
“Whilst we have always focused on creating shareholder value, the current economic environment has resulted in an increasing focus on strategies that preserve shareholder value,” said Myers
The demerge of Econet Wireless Zimbabwe Limited (EWZL) and Cassava SmarTech Zimbabwe Limited (CSZL), in the last quarter of 2018 into separately listed entities on the Zimbabwe Stock Exchange as one the shareholder strategies, has seen both firms comprise combined 40% of the market value of the Zimbabwe Stock Exchange.
“The combined value of the now separately listed companies is much more than the value of the previously integrated EWZL, which demonstrates how shareholder value has been unlocked,” read the report
“These demonstrate how shareholder value has been unlocked” he added
Econet retained ownership of 20% of CSZL, a shareholding that is worth more than ZWL 1.14 billion, as at 21 June 2019.
CSZL is now the new holding company for EcoCash, EcoSure, Econet Insurance, Steward Bank and Steward Health. All shareholders in Econet Wireless Zimbabwe Limited received shares in CSZL proportionate to their shareholding in EWZL. CSZL is worth ZWL 5.7 Billion in shareholding.
Econet has been investing in renewable energy as a key focus area for long term cost containment and business sustainability.
A total of 116 solar powered sites have been commissioned, reducing generator runtime, fuel consumption and the related carbon dioxide emissions.
The alternative energy solution housed under its affiliate Distributed Power Africa (DPA) gained momentum during the year. DPA operates as an independent entity and is rolling out solar projects totalling 7 megawatts. Of the seven 3 MW have already been commissioned.