[Kictanet] Fwd: [DigAfrica] Econet buys back Sh6b stake from partner

[Brian Longwe]

This is the company that allegedly can't get overdraft  
facilities ..... paying 6billion in a single transaction  - business  
is about value, not about cash - cash follows value....

Brian

Begin forwarded message:

> From: "Chifu" <chifu2222 at msn.com>
> Date: 22 September 2005 05:37:29 GMT+03:00
> To: DigAfrica at yahoogroups.com
> Subject: [DigAfrica] Econet buys back Sh6b stake from partner
> Reply-To: DigAfrica at yahoogroups.com
>
>
> Econet buys back Sh6b stake from partner
> By Bryan Mbugua
>
> Econet Wireless Group (EWG) yesterday paid Allied Technologies Group
> (Altech) over Sh6 billion to acquire back 50 per cent shareholding in
> Botswana-incorporated Econet Wireless Global.
>
> The buyout was made ahead of the payment deadline that was due on  
> October.
>
> In a statement, Econet Group Chief Executive Officer Strive Masiyiwa
> said the group had decided to make full payment in advance to enable
> the business function normally and to begin implementing its expansion
> programmes.
>
> Masiyiwa said following the payment, Econet will reconstitute its
> board of directors to focus on a number of projects of projects in the
> pipeline.
>
> Econonet Wireless Kenya, a subsidiary of Zimbabwean Econet Wireless
> Group, won the bid to roll out the third mobile network in Kenya, but
> its launch has been locked in wrangles between shareholders.
>
> Altech, a South African company also listed on Johannesburg Stock
> Exchange, bought half ownership of Econonet Wireless Group last
> November for about Sh5 billion.
>
> However, fallout among the shareholders led Econet to opt for an
> out-of-court settlement over the disputed Botswana operations.
>
> Earlier, Altech had applied to the High Court in Botswana to wind up
> the Econonet Wireless Group.
>
> In the application, Altech had sought to either buy out original
> Econet shareholders, including the family of CEO Strive Masiyiwa, or
> sell its stake to them for about Sh7.5 billion, incase its winding up
> application failed.
>
> "Although the settlement agreement between the parties only required
> Econet to come up with a bank guarantee by September 20, and make
> final payment by the end of October, the company decided to make full
> payment in advance," Masiyiwa said. Econet Wireless Global would
> continue to operate as a Botswana-based wholly-owned subsidiary of the
> group.
>
> "Econet Wireless Group today completed its payment to Altech for its
> 50 per cent stake in Econet Wireless Global.
>
> "This will enable the business to function normally and begin to
> implement its own expansion programmes.
>
> An early settlement also allows us to reconstitute the board and also
> complete some of the projects in the pipeline. Now that we have paid
> Altech, their directors on our board have also resigned and we can now
> replace them which is important for our corporate governance," he  
> said.
>
> Masiyiwa said the group would continue with its expansion programme in
> the telecommunications sector and with the arbitration process in
> Nigeria to increase its stake in Vee Mobile, formerly Econet Wireless
> Nigeria.
>
> Source: http://www.eastandard.net/hm_news/news.php?articleid=29262
>
>
>
>
>
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