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Senior Business Writer

ECONET Wireless Zimbabwe, the leading mobile telecoms company in Zimbabwe is set to consider the renewal of its share buyback authority at its forthcoming Annual General Meeting provided that the repurchases are not made at a price greater than five percent above the weighted average of the market  value.

The telecommunication firm is set to hold its 26th AGM on August 30, 2024

A share buyback occurs when a company uses cash on hand to buy and retire some of its own shares in the open market.

Also known as stock repurchase, it tends to boost share prices in the short-term, as the buying reduces the supply of outstanding shares and the buying itself bids the share higher in the market.

Econet Wireless

According to the AGM notice, Group Company Secretary, Tatenda Ngowe said under special business, the firm will consider and if thought fit, to adopt, with or without amendment as a Special Resolution: “That the Company, as duly authorised by Article 10 of its Articles of Association, may undertake the purchase of its own ordinary shares in such manner or on such terms as the directors may from time to time determine, provided that the repurchases are not made at a price greater than five percent above the weighted average of the market value for the securities for the five business days immediately preceding the date of the repurchase and also provided that the maximum number of shares authorised to be acquired shall not exceed 10 percent of the Company’s issued ordinary share capital.”

“That this authority shall expire at the next Annual General Meeting and shall not exceed beyond 15 months from the date of this resolution”.

 The notice adds that after considering the effect of the maximum repurchase of the shares, the Directors are confident that “the Company will be able to pay its debts for a period of 12 months after the date of the Annual General Meeting, the assets of the Company will be in excess of liabilities.”

 The share capital and reserves of the Company are adequate for a period of 12 months after the date of the notice of the AGM and the Company will have adequate working capital for a period of 12 months after the date of the notice of the Annual General Meeting.

The AGM is also expected to consider and adopt the financial statements for the year ended February 29, 2024 together with the reports of the directors and auditors.

The election of directors and approval of auditors’ remuneration for the previous year is part of the agenda.