Econet declares billion-dollar dividend

  • ZW$0.40 to be paid per share
  • Econet has almost 2.6 billion shares in circulation
  • The company’s shares accounted for nine percent of total shares traded on the ZSE in their fiscal year

Harare – Zimbabwe’s biggest telecommunications company, Econet Wireless Zimbabwe Limited has declared a dividend of ZW$0.40 per share for the fiscal year ended 28 February 2021.

Econet has almost 2,6 billion shares in circulation, which therefore means after paying ZW$0.40 for each one of them the total dividend for the year will be ZW$1.04 billion (US$12.3 million using the current interbank exchange rate which is US$1:ZW$84.397).

The shares will trade cum-dividend till April 20 while they will trade ex-dividend to April 21.

The record date has been set for April 23 and shareholders will be receiving their dividend on or about April 30, 2021.

In a dividend declaration notice issued on Friday, Econet’s secretary, Charles Banda, said payments to foreign shareholders will be subject to exchange control approval and payment guidelines for foreign remittances.

“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 remittances to them,” Mr Banda said.

 At the same time, in an effort to provide an expedient and convenient service for local shareholders, Mr. Banda said they will continue “to pay dividends through EcoCash to shareholders who have opted for this payment mode.”

Meanwhile, Econet closed the year at a nominal value of ZW$17.62 per share as compared to ZW$2.80 in the year to 28 February 2020 signaling a surge of 529 percent which was however 249 percentage points behind the recorded overall market growth of 778 percent in the same fiscal period.

The company however contributed a total of ZW$1.9 billion in turnover against an aggregate of ZW$21.2 billion for the overall market, implying a dominance of nine percent of the total value of shares traded over the year.

The financial performance results for the whole year are yet to be released.

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