$50mln windfall for Econet shareholders

HARARE,– Zimbabwe’s largest telecommunication company, Econet Wireless on Wednesday announced a dividend amounting to $50 million for the nine months ended November 30, 2017.

Econet posted 17 percent growth in revenue to $353 million with profit amounting to $49 million in the six months to August 31, 2017.

Shareholders will receive their dividend in March and foreign shareholders payments will be subject to exchange control approval and payment guidelines for foreign remittances.

However but local companies have struggled to repatriate dividends to shareholders outside the country due to a biting hard currency crunch.

As at June last year, the southern African country had a backlog of $75 million in dividends and proceeds from sales that are owed to foreign investors.

“Foreign shareholders should appoint or make their own arrangements with a local bank of their choice to receive dividend on their behalf and to facilitate remittance to them,” said company secretary Charles Banda in a notice.

Major shareholders of Econet are Econet Wireless Global, Stanbic Nominees and Econet Wireless Zimbabwe, with a shareholding of 30,02 percent, 17,23 percent and 13,19 percent respectively. – Source