Zimbabwe's Econet Wireless says it will go ahead with an extraordinary general meeting to pave the way for its US$130 million rights offer – despite a request by the Zimbabwe Stock Exchange (ZSE) to postpone it.

The meeting is scheduled for 3 February, but the ZSE believes it should be postponed to allow the telco to manage controversy over the rights issue.

The controversy arose when Econet proposed that shareholders pay for the rights issue (funds from which the company intends to settle its debts) offshore, using an account held with Africa Export and Import Bank (Afreximbank).

Shareholder activists, among other stakeholders, had queried the proposal saying it prejudiced local shareholders. Concerns had also been raised over potential dilution of minority shareholders in the company.

ZSE Chairperson Caroline Sandura said "In this regard, Econet will publish a supplementary circular in due course explaining these issues to the investing public."

However, Econet Wireless has confirmed it will proceed with the meeting and that it has made arrangements with the Reserve Bank of Zimbabwe to allow shareholders inside Zimbabwe to pay for the rights issue straight into a local Steward Bank account.

Econet Wireless also owns Steward Bank after buying out former chairman, Tawanda Nyambirai.

"The company's extraordinary general meeting shall proceed as published. Members are advised to disregard any notices to the contrary that are not coming from the company," Econet Wireless said on Thursday.

The telco added that it was to open Rights Offer account with a local receiving bank into which "those shareholders designated as resident shareholders in the register of members... shall deposit the proceeds of the rights issue using cash, bond notes or electronic" money.

Econet Wireless Global, which is underwriting the rights offer for Econet Wireless Zimbabwe, will in exchange for the amount paid by the resident shareholders, pay the equivalent of the amount contributed by shareholders resident in Zimbabwe to the international receiving bank, Afreximbank.

"In the event that any resident shareholder sells their rights offer shares to non-residents, the foreign currency thereby generated shall be remitted to the Reserve Bank of Zimbabwe and allocated towards the remittance of the money due to the underwriter.

"The RBZ shall agree with the company on a schedule for the remittance of the money held on behalf of the underwriter over the period during which the foreign debt was repayable and in equal instalments," Econet highlighted.

It has also emerged that ZSE CEO Alban Chirume had initially cleared the offshore rights offer proposal by Econet, but is being criticised for the decision.

Chirume is quoted saying the ZSE's role was not to approve transactions but to "ensure" that companies provided all the required "disclosures... to enable shareholders to make informed decisions" on transactions.

Econet is Zimbabwe's biggest telecommunications company with more than 10 million registered mobile network subscribers and over 5 million mobile money users.