Econet is reportedly considering listing $1 billion in shares on the London Stock Exchange, while its discussions over potentially acquiring some of Millicom’s African assets are ongoing.
Millicom is looking to reduce its footprint in Africa in order to focus on Latin America, and is aiming to shift holdings in Chad, Ghana, Rwanda and Tanzania. Econet has operations in its home market of South Africa and Zimbabwe, so an acquisition would allow it to expand its footprint beyond these markets.
Econet, which was founded by Zimbabwean businessman Strive Masiyiwa, is also lining up a 2018 IPO in London. The move was prompted by the company recently being valued at $8 billion, a value which factors in its ongoing combination of its current and new assets, as well as prospective acquisitions in order to grow its African business.
However, it has not yet been revealed whether Millicom’s assets were among those accounted for in the valuation, and the valuation is likely to change as Econet sets out its plans. Econet was first implicated in a potential acquisition of Millicom’s African assets in October.
The group is aiming to generate $1 billion from the London listing, and may additionally list on the Johannesburg Stock Exchange in South Africa. Econet has interests in 17 markets and is looking to expand in order to encourage overseas investment, which will allow it to acquire further assets.