Econet: Telecom giant seeking to raise $1 billion at stock exchange

If this pulls through, it could see Econet valued at up to $8 billion.

African telecommunications giant, Econet, is looking to raise $1 billion at the London Stock Exchange in 2018. 

This single move, if possible, will see Econet’s value shoot up to $8 billion in 2018, when you combine new and existing assets. This is according to insider reports from Bloomberg. 

This valuation is going to be based on an enlarged group, thanks to the acquisition of African telco businesses, according to anonymous sources. Plans haven’t been finalised though, and the final decision will depend on market conditions. Econet in 2016, made some TV acquisitions in Ghana, Nigeria, and Uganda. Econet is currently in talks with Millicom International Cellular SA to buy some Africa-based assets from the Luxembourg-based carrier, although no final decision has been made, one of the people said. Millicom has holdings in four African countries (Tanzania, Chad, Ghana and Rwanda), with a user base of 25 million. So if this pulls through, you bet it will be huge.

Just to juggle your memory on Econet.

Econet is more familiar to Nigerians as one of the first telcos to hit our shores at the beginning of the GSM era. It was founded by Zimbabwean phone tycoon, Strive Masiyiwa. In fact, Strive made the first GSM call in Nigerian history in 2001, when he called the regulator to say, “we’re live!”.

Strive Masiyiwa is one of Africa's richest men, making most of his fortune from Telecommunications. (Enterprise54)

“Pay, or I’ll chase you out of the country.”

That’s what Strive alleged that James Ibori said when he demanded a $4.5m bribe. Strive left Nigeria with Econet Wireless.

James Ibori served as a two-time governor in Delta State, from 1999 to 2007. (AFP/File)

But Strive is making a comeback to Nigeria, not as Econet Wireless, but by an Econet-operated company, Kwese TV.

Kwese's model is going to shakeup Multichoice's dominance in the African Cable TV market. (kwese tv)

Econet now has interests in 17 countries, including South Africa, where it has the largest domestic fiber company, Liquid Telecoms Group.

Econet’s 8 billon dollar plan.

Econet’s plan is to sell about $1 billion in new shares when they IPO in London. They may also consider a secondary listing in J’burg, according to sources. While no final decisions have been made, this move is to seek international investors to fund new acquisitions. 

While Econet declined to comment on the details of the plan, they said:

“We are working to streamline these into a vehicle which can be listed,” the company said in an emailed response to questions. “At the moment, Econet considers it premature to discuss further, but will provide further clarity should the listing proceed.”

Millicom spokesman Malcolm Fitzwilliams declined to comment, saying that the company's priority is to profitably and responsibly accelerate organic sales growth. The company’s stock declined 0.9 percent to 532 kronor at 2:24 p.m. in Stockholm.

Earlier in 2017, Econet raised $700 million in bonds and loan financing. Again, this will be used to sort out planned acquisitions and a purchase of South Africa’s Neotel Pty Ltd. late in 2016.