Breaking News

Econet to pays US$27 million to buy TN Bank

by Business Reporter
22 January 2013 | 4783 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 Tsvangirai's BIG TENT leaking?

Yes
18.52%
No
25.93%
Not bothered
55.56%
27

Comments

News Updates

Email:

Latest News

MLF stands by its solidarity message for Scotland

by MLF | 18 September 2014 | 346 Views

Zimbabwe's electricity woes could be coming to an end - The Zimbabwean...

by Staff Reporter | 18 September 2014 | 586 Views

Steady growth for Zimbabwean economy - The Zimbabwean economy has main...

by Staff Reporter | 18 September 2014 | 351 Views

Man demands lobola refund after bride 'impregnated by another man'

by Staff Reporter | 18 September 2014 | 665 Views

Govt to establish 30 more tollgates - Government plans to establish 30...

by Staff Reporter | 18 September 2014 | 418 Views

Delays in reviving New Zim-Steel explained - The Government and an Ind...

by Staff Reporter | 18 September 2014 | 295 Views

Hitch-hiker disappears with Good Samaritan's car - An 18-year-old hit...

by Staff Reporter | 18 September 2014 | 342 Views

Chihuri nabbed for stealing kombi

by Staff Reporter | 18 September 2014 | 435 Views

Woman throws newborn in sewage - A 23-year-old Zimbabwean woman li...

by Staff reporter | 17 September 2014 | 742 Views

Shock as cow 'gives birth to a human' - Curious residents have flocked...

by Staff reporter | 17 September 2014 | 1440 Views

Liverpool 2 -3 Coventry City 1994-95, Peter Ndlovu hat-trick - Video -...

by Sports reporter | 17 September 2014 | 734 Views

Mr Tsvangirai, leaders are changed through the ballot - HISTORY should...

by Mukachana Hanyani | 17 September 2014 | 539 Views

'Zimbabwe economy could collapse on Zimdollar reintroduction' - ZIMBAB...

by Staff reporter | 17 September 2014 | 832 Views

Tsvangirai's MDC-T demands end to police HQ siege - THE MDC-T has cond...

by Staff reporter | 17 September 2014 | 714 Views

Mugabe ready to testify in US court - LAWYERS for a Chicago man charge...

by Chicago Tribune | 17 September 2014 | 630 Views

Russia's Foreign Minister, Lavrov leaves Zimbabwe - Russia's Foreign M...

by Staff reporter | 17 September 2014 | 457 Views

Zimbabwe, Namibia conduct airforce drills - Zimbabwe and Namibia on We...

by Blessing Zulu | 17 September 2014 | 509 Views

US reviewing Zimbabwe situation - The United States Ambassador to Zimb...

by Taurai Shava | 17 September 2014 | 776 Views

Subscribers cry foul over NetOne blackout - Tonnes of farm produce is ...

by Moyo Roy | 17 September 2014 | 844 Views

Zanu PF members will decide who to lead the party during the congress...

by Kennedy Mapesa Mandaza | 17 September 2014 | 952 Views

Obert Mpofu attacks striking NRZ workers

by Staff Reporter | 17 September 2014 | 1661 Views

Zanu-PF orders farm invaders to vacate or face eviction - The governme...

by Staff reporter | 17 September 2014 | 1869 Views

IMF delegation jets into Zimbabwe - An International Monetary Fund (IM...

by Staff reporter | 17 September 2014 | 947 Views

Was TB Joshua Right? - Iraq Ambassador claims ISIS plans to assassinat...

by Lee Seung | 17 September 2014 | 2040 Views

Delta Beverages slashes beer prices - Delta Beverages has slashed bee...

by Staff reporter | 17 September 2014 | 1874 Views

'SA Deputy President Ramaphosa murdered workers,' Parliament told - C...

by news24 | 17 September 2014 | 1511 Views

MDC-T SA on Zimbabwe special permits update - Feedback from the Meeti...

by Staff Reporter | 17 September 2014 | 2695 Views

Okapi killer sentenced - A 19-year-old Gwanda teenager who fatally st...

by Staff reporter | 17 September 2014 | 1873 Views

Entertainment

Zuma daughter's new soapie to replace Generations - JOHANNESBURG - Sow...

by Staff reporter | 17 September 2014 | 2606 Views

Afrika Revenge reunites - Award winning duo of Willis "Afrika" Kachamb...

by Sophia Chese | 16 September 2014 | 1776 Views

Usandikanganwe - Lady Bee ft Manhanga

by Staff Reporter | 15 September 2014 | 2137 Views

Generations actors agree to go back to work - The 16 Generations stars...

by City Press | 14 September 2014 | 4151 Views

Bulawayo born singer wows X Factor Judges

by Staff Reporter | 13 September 2014 | 3117 Views

Byo singer wins 80K recording deal, duped by sponsors

by Hangoyapalala waTjibundule | 12 September 2014 | 3317 Views

Axed Generations actor's marriage crumbles - Menzi Ngubane better know...

by Times LIVE | 12 September 2014 | 6548 Views

'Nollyhood' comes to Byo

by Hangoyapalala waTjibundule | 11 September 2014 | 2683 Views
iBlog

Yet Another Wave Of Digital Destruction Is Coming

Malware fever keeps on raging, taking sophisticated forms to wreak havoc around the worldwide web. even if your system is guarded thoroughly, you are still skating on thin ice, so you should better keep your eyes open and think twice before you make ... Read More
SecNews 02 March 2014 ago

Obviously, Windows Xp Has Nothing More To Offer

With no support from the manufacturer, windows xp no longer receives antivirus updates, which provoked an increase in the number of attacks on xp users. according to avast company, windows xp systems are attacked 6 times more often than the devices r... Read More
Sergey 12 June 2014 ago