Breaking News

Econet to pays US$27 million to buy TN Bank

by Business Reporter
22 January 2013 | 5300 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
20.63%
No
73.72%
Not sure
5.64%
567

Comments

News Updates

Email:

Latest News

Nigerian central bank officials nabbed over 'mega scam'

by Staff Reporter | 01 June 2015 | 1406 Views

Julius Malema's tax woes over - In a surprise turn of events, South Af...

by Staff reporter | 01 June 2015 | 3091 Views

Ex-national cricket team coach sues Zim Cricket for $330K - The Labour...

by Staff reporter | 01 June 2015 | 1655 Views

Pastor brags about his riches on Facebook

by Staff reporter | 01 June 2015 | 4330 Views

Cold and windy conditions on their way - The Matroosberg mountains in ...

by Staff reporter | 01 June 2015 | 2190 Views

More protection against reckless credit for SA consumers - The recent ...

by Sithandile Mpofu | 01 June 2015 | 1562 Views

Promiscuity in Zimbabwe: any near solution to it? - Sibusisiwe: Well ...

by Nomazulu Thata taken from the ebook: | 01 June 2015 | 2869 Views

NUST workers seek disbandment of union - National University of Scienc...

by Stephen Jakes | 01 June 2015 | 1614 Views

Mugabe pressured to settle his $345k power debt - President Robert Mug...

by Staff reporter | 01 June 2015 | 3548 Views

'Mujuru terrifies Mugabe' - President Robert Mugabe and Zanu-PF hardli...

by Staff reporter | 01 June 2015 | 4834 Views

'Tsvangirai can go hang' - Zanu-PF political commissar Saviour Kasukuw...

by Staff reporter | 01 June 2015 | 2126 Views

Thousands baptized in major SDA outreach effort in Zimbabwe

by Andrew McChesney, Adventist Review | 01 June 2015 | 2555 Views

Watch: Mugabe being humiliated in Nigeria - PRESIDENT Robert Mugabe ma...

by Staff reporter | 01 June 2015 | 7984 Views

Dembare coach hires bouncers

by Sports reporter | 01 June 2015 | 3363 Views

Inmate beats up cellmate for refusing to share a cigarette - A MURDER ...

by Marvelous Moyo | 01 June 2015 | 2010 Views

Tsvangirai and MDCs will regret poll boycott stance in 2018 - A LOCAL ...

by Staff reporter | 01 June 2015 | 2187 Views

Bulawayo City Council clamping and tow away by-law

by M Nyoni | 01 June 2015 | 2672 Views

Mphoko consoles accident victim's family

by Mashudu Netsianda | 01 June 2015 | 3028 Views

Busisa Moyo takes over CZI presidency

by Staff reporter | 01 June 2015 | 2012 Views

Jonathan Moyo fails to inspire Tsholotsho FC - Tsholotsho FC 0 - 2 Cap...

by Sports reporter | 01 June 2015 | 2591 Views

Woman divorces 'uneducated' hubby - A Harare woman allegedly divorced ...

by Staff reporter | 01 June 2015 | 5500 Views

Man bashes wife for being in city - A MEMBER of the Zimbabwe National...

by Staff reporter | 01 June 2015 | 3882 Views

Mnangagwa promises more expulsions - Vice-President Emmerson Mnangagwa...

by Staff reporter | 01 June 2015 | 2601 Views

Xhing Xhong Cement Company to build plant in Zimbabwe - The Masvingo R...

by Staff reporter | 01 June 2015 | 1924 Views

Kombi overturns into ditch, 16 cheat death

by Staff reporter | 01 June 2015 | 2784 Views

Fake nurse steals newborn - A NEW mum is crushed after her baby boy wa...

by Staff reporter | 01 June 2015 | 2480 Views

Econet under attack for swindling customers through data bundles - The...

by Stephen Jakes | 01 June 2015 | 3126 Views

Entertainment

DJ Sbu lied again, landlord now selling his house - Controversial Sou...

by Sunday World | 01 June 2015 | 2069 Views

ZiFM caught in royalties storm - THE Zimbabwe Music Rights Associati...

by Thobekile Zhou | 29 May 2015 | 3196 Views

Bev takes raunchy dance to UK - RAUNCHY pole dancer - Beverly Sibanda...

by Thobekile Zhou | 29 May 2015 | 3687 Views

Ex-Generations actress was once involved in an adulterous affair with ...

by Staff reporter | 26 May 2015 | 9098 Views

ZTV blackout looms - ZIMBABWE will likely miss the June 17 Internation...

by Staff reporter | 25 May 2015 | 5796 Views

Bulawayo snubs Big Nuz - AFTER gathering strength to make the long tr...

by Kusile Madlela | 25 May 2015 | 5369 Views
iBlog

Time To Kiss Zimbabwe Goodbye Forever.

By israel dubethings fall apart at zanupf. brother turns against brother, sister betrays sister. the center cannot hold anymore. as the walls of oppression and discrimination collapse, matebeles must make sure that they do not find themselves lost i... Read More
myAfroTube 03 November 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