Breaking News

Econet to pays US$27 million to buy TN Bank

by Business Reporter
22 January 2013 | 5169 Views
ECONET Wireless Zimbabwe will pay out about US$26,5 million worth or the cash equivalent to acquire the remaining 55 percent ordinary shareholding in TN Bank Limited.

Econet and TN did not reveal the transaction value when they announced the deal late last year, but a circular to shareholders puts the offer price at US15,91c per TN Bank share.

The remaining single biggest shareholder and TN Bank founder Mr Tawanda Nyambirai will take a combination of cash and shares in Econet after agreeing to sell his stake in the bank.

Econet Wireless is offering of US15,91c per TN Bank share or one Econet Wireless share for 28,79 TN Bank share for shareholders that will opt for scrip.

The mobile phone operator will acquire 55 percent of the 30 301 253 348 issued and fully paid ordinary shares, worth US$26,5 million at the price of US15,91c per share.

Econet already owned 45 percent of the shares following its acquisition of 62 311 140 TN Bank ordinary shares after investing US$20 million in the bank.

Econet quickly sought the separate listing of TN Bank on the Zimbabwe Stock Exchange, after acquiring a swaying 45 percent interest. TN Bank was part of TN Holdings Limited.

After assuming strategic control of the bank, Econet has now decided to acquire the remaining 55 percent to align the bank's operations with the telecoms firm's interest. The acquisition of the full control of the bank will also enable the bank to meet the Reserve Bank of Zimbabwe's new minimum capital threshold of US$100 million without difficulty, considering Econet Wireless' financial muscle.

More importantly, assuming total control of TN Bank will give Econet the financial platform of a registered financial institution it requires to leverage the growth of its fast growing mobile money transfer/banking service, EcoCash.

EcoCash now handles in excess of US$70 million worth of transactions on a daily basis, making the availability of a dedicated fully incorporated bank a priority.

EcoCash has set TN Bank apart from other commercial banks. It is the administrator of the trust account where EcoCash, with more than 1,7 million subscribers, holds its funds.

The rapidly growing mobile money service is now used to pay for goods and services in addition to money transfer. Shareholders with a combined 30 percent of TN Bank, made up of trusts belonging to founder Mr Nyambirai, have already consented to taking up new shares in Econet Wireless.

Econet Wireless Zimbabwe (Pvt) Limited is the holding company of businesses involved in cellular operations, provision of internet access and transaction processing in Zimbabwe. It controls Econet Wireless Limited, a cellular network operator with over 7 million subscribers, according to latest data.

Econet owns the entire stake in Pentamed Investments (Pvt) Limited, which holds 69 percent of Mutare Bottling Company.




It controls financial solutions provider Transaction Payment Solutions, provider of switching, point of sale and value added services, which exploits convergence of banking, information technology and telecommunications and owns EW Capital Holdings Limited, as its investment arm for carefully selected investments.

Econet Wireless also has Data Control Systems as an associate.
The firm, which trades as Liquid Telecom, is a leading internet access provider in Zimbabwe specialising in data services, voice and Interprotocol services.

Econet TN Bank

Source: TH

Is Itai Dzamara eyeing the US Green Card?

Yes
16.13%
No
78.63%
Not sure
5.24%
248

Comments

News Updates

Email:

Latest News

Teenage Tsikamutanda kidnaps villagers - A Hwange teenager led six eld...

by Staff Reporter | 29 March 2015 | 283 Views

Bosso silences stubborn Tsholotsho FC - HIGHLANDERS FC youngster-Teen...

by Thobekile Zhou | 29 March 2015 | 646 Views

VID's retest is an unworkable law and a deflection towards traffic saf...

by Sean Mukasa | 29 March 2015 | 1121 Views

The Zulu King has spoken, what does Chief Gumede think? - The Zulu ki...

by This n that with Maluphosa - Clerk Ndlovu | 29 March 2015 | 1245 Views

Cop acquitted of faking hubby's death for fraud - A MASVINGO police of...

by Walter Mswazie | 29 March 2015 | 841 Views

'I'm better off with you,' man tells girlfriend's 11 year old daughter...

by Fairness Moyana | 29 March 2015 | 1285 Views

Jonathan Moyo snubs Tsholotsho/Highlanders game - Information Minister...

by Thobekile Zhou | 29 March 2015 | 1896 Views

Two Pics From BF Today - ...

by Staff Reporter | 29 March 2015 | 1900 Views

Zimbo dies while trying to abort in Botswana - Police in Francistown B...

by Stephen Jakes | 29 March 2015 | 1270 Views

Prof Moyo praying for Magaya - Government's information tsar, Jonathan...

by Tholakele Zhou | 29 March 2015 | 2395 Views

BCC gives up on repossessing power station - BULAWAYO City Council ha...

by Staff Reporter | 29 March 2015 | 821 Views

South Africa Communist Party condemns burning of a Zimbabwean National...

by Stephen Jakes | 29 March 2015 | 1764 Views

Girl (9) raped, left unconscious at cemetery

by Staff Reporter | 29 March 2015 | 1720 Views

Assassination attempt on Prophet Magaya exposed

by Staff Reporter | 29 March 2015 | 2777 Views

Seized diamonds returned to Zimbabwe - The final installment of 500,00...

by Staff reporter | 29 March 2015 | 1770 Views

University bars pregnant student from campus - GREAT Zimbabwe Universi...

by Vusumuzi Dube | 29 March 2015 | 1696 Views

Gift Banda in another scandal - Bulawayo Deputy mayor Gift Banda is on...

by Staff Reporter | 29 March 2015 | 2091 Views

Police officer loses nose to 'madman' - IT will be long before a Bulaw...

by Mncedisi Buhali | 29 March 2015 | 1477 Views

Mugabe's birthday gig fuel stolen in Mat South - About 240 litres of f...

by Staff Reporter | 29 March 2015 | 1001 Views

Logic simply ain't Tsvangirai's forte - There is a bigger lesson for v...

by Joram Nyathi | 29 March 2015 | 964 Views

Zimbabwe govt no longer issuing 99 year leases on land reform benefici...

by Lincoln Towindo | 29 March 2015 | 998 Views

Female condoms used as hair moisturizer - BULAWAYO hairdressers are us...

by Staff Reporter | 29 March 2015 | 1332 Views

Zanu-PF MP dies - ZANU-PF Mudzi West House of Assembly representative ...

by Staff reporter | 29 March 2015 | 2000 Views

Joice faces arrest over Gen Mujuru's will - Former Vice-President Dr J...

by Debra Matabvu | 29 March 2015 | 1359 Views

Mujuru among Africa's wealthiest people? - If the Mujurus empire is as...

by Staff reporter | 29 March 2015 | 1617 Views

Civil servants forced to join Zanu PF - Zanu PF members are reportedly...

by Stephen Jakes | 29 March 2015 | 1143 Views

Black bird flies away with toddler - THE family of a baby who was pick...

by Staff reporter | 29 March 2015 | 1465 Views

Zanu PF official threatens party members for working with MDC-T - A Za...

by Stephen Jakes | 29 March 2015 | 908 Views

Zanu PF records names of voters in Chirumhanzu-Zibagwe and Mount Darwi...

by Stephen Jakes | 29 March 2015 | 867 Views

Entertainment

Comedian BRINGS new life to Cotton Country Inn

by Kadoma Directory | 28 March 2015 | 1262 Views

Buju Banton released early and deported, rumors untrue

by Staff Reporter | 27 March 2015 | 4106 Views

Mutodi praises Mnangagwa in new song - Flamboyant sungura musician-cu...

by Staff reporter | 26 March 2015 | 2126 Views

Tuku teams up with Bra Hugh for Cape Town Jazz Festival - The 16th Cap...

by Arts reporter | 26 March 2015 | 819 Views

ZimOnline Radio sponsoring the ZimCup Clash trophies - ZimOnline Radio...

by Staff Reporter | 25 March 2015 | 1188 Views

Kwaito legend dies

by Staff reporter | 25 March 2015 | 7755 Views

DJ Sbu in Forbes cover scandal

by Staff reporter | 23 March 2015 | 5557 Views

DStv to cut off SA subscriptions - Multichoice intends to cut off Digi...

by Staff reporter | 23 March 2015 | 8910 Views
iBlog

The Zero-day Vulnerability Cve-2014-4114 Impacting All Versions Of Microsoft Windows

new microsoft windows zero-day vulnerability - cve-2014-4114on tuesday, october 14, 2014, isight partners - in close collaboration with microsoft - announced the discovery of a zero-day vulnerability impacting all supported versions of microsoft win... Read More
SecNews 16 October 2014 ago

Rules Or Relationship

The dog does not need a lead to go for a walk. its owner can just speak a word and the dog responds. now, we are not comparing ourselves to dogs, we are comparing performance-based christian living to relationship-based christian living. big, big ... Read More
LindaDiokpa 30 December 2014 ago