Econet could benefit from Coca Cola's termination of Delta's bottling agreement
TechZim reports that Econet Wireless Zimbabwe could benefit from Coca Cola’s termination of Delta Beverage’s bottling agreement. The publication notes that Mutare Bottling Company, the other bottler of Coca-Cola products in Zimbabwe is owned by Econet Wireless Zimbabwe.
The mobile operator has a 69% stake in the company which it snapped up in 2007 as part of its diversification strategy.
The announcement by Coca Cola could be an opportunity for Econet if it can secure distribution rights, expand capacity and in the process boost revenues from its ancillary investment.
As the local telecoms industry faces challenges that have resulted in a regular decline in revenue the one non-core asset that Econet once considered disposing five years ago could be the hedge that’s needed by the operator.
More: TechZim
