Breaking News

Econet to pays US$27 million to buy TN Bank

by Business Reporter
22 January 2013 | 3733 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


News Updates


Latest News

Manheru latch on liberation war credential bull to give Mugabe elector...

by Wilbert Mukori | 29 November 2015 | 779 Views

Harare Darts Season ends - Best players rewarded

by Collen Maenda | 29 November 2015 | 371 Views

Buffalo Range airport refurbished - Buffalo Range airport terminal in ...

by Staff reporter | 29 November 2015 | 967 Views

Baboon skull wrecks family - The subject of black magic and evil pow...

by Staff reporter | 29 November 2015 | 1586 Views

Zimbabwe's budget less than half the annual turnover of Shoprite - The...

by Zimbabwe Vigil Diary | 29 November 2015 | 1501 Views

Teenagers caused accident which killed 15 people - Three boys from Mud...

by Staff reporter | 29 November 2015 | 3699 Views

Skyz Metro FM to launch in January - Skyz Metro FM, which was licensed...

by Staff reporter | 29 November 2015 | 933 Views

Bev's wicked dance act scoops R25,000 in SA competition

by Staff reporter | 29 November 2015 | 2409 Views

'Grace Mugabe wants to secure future' - First Lady Grace Mugabe's grow...

by Staff reporter | 29 November 2015 | 1931 Views

Chief, war vets throw weight behind 11 besieged white farmers - Chief ...

by Staff reporter | 29 November 2015 | 2152 Views

Reverend rubbishes sodomy claims - Assemblies of Pentecostal Methodist...

by Staff reporter | 29 November 2015 | 979 Views

There is no war with war veterans - I found it of grave importance to ...

by Ministry of Truth with Cde Jason Zhuwao | 29 November 2015 | 1022 Views

Inyanga jailed 14 years for raping five year old kids infecting them w...

by Stephen Jakes | 29 November 2015 | 1470 Views

ZEC sets 30 polling stations for Nkulumane by elections - The Zimbabwe...

by Stephen Jakes | 29 November 2015 | 731 Views

CAAZ embarks on recruitment drive - The Civil Aviation Authority of Z...

by Stephen Jakes | 29 November 2015 | 1545 Views

Mpilo to dispose property on December 4 - Mpilo Hospital which is cur...

by Stephen Jakes | 29 November 2015 | 1261 Views

ZMC calls for renewal of mass media services certifacates and journali...

by Stephen Jakes | 29 November 2015 | 610 Views

Zimbabwe insurance firms accused of robbing policy holders - PENSION a...

by Staff reporter | 29 November 2015 | 1299 Views

Inmate rapes, kills jail guard - A prisoner at a Hurungwe prison in Ma...

by Staff reporter | 29 November 2015 | 3162 Views

Zanu-PF MP wants birth control for men - Shamva South MP, Joseph Mapik...

by Staff reporter | 29 November 2015 | 1202 Views

Chinamasa's national budget a damp squib- MDC -  The MDC has dis...

by Stephen Jakes | 29 November 2015 | 673 Views

Tuku, Zahara divide Harare - THIS week, two high profile South Africa...

by Staff reporter | 29 November 2015 | 1421 Views

Who are the Soccer Stars? - CONTROVERSY and the Soccer Stars of the Ye...

by Langton Nyakwenda & Ishemunyoro Chingwere | 29 November 2015 | 1287 Views

Bulawayo mayor to commission solar traffic lights - Bulawayo Mayor Mar...

by Stephen Jakes | 29 November 2015 | 955 Views

Spurned man demands lobola back - A DISGRUNTLED Bulawayo man who could...

by Lungile Tshuma | 29 November 2015 | 1419 Views

Second-hand car import volumes plummet - SECOND-HAND motor vehicle imp...

by Staff reporter | 29 November 2015 | 1900 Views

Driving licence tests high failure rate torches storm - AN alarming nu...

by Staff reporter | 29 November 2015 | 2155 Views

Visually impaired prosecutor cries foul - THE traditional symbol of ju...

by Richard Muponde | 29 November 2015 | 845 Views

Zanu-PF goes overdrive to claim Nkulumane seat - THE Zanu-PF campaign ...

by Staff reporter | 29 November 2015 | 611 Views

Accused's mum hurls insults at court officials - A WOMAN went berserk ...

by Fairness Moyana | 29 November 2015 | 868 Views


DJ Sticha produced a scintillating hit track for Team Bulawayo

by Stephen Jakes | 29 November 2015 | 904 Views

Bob Marley family confront Zimbabwe Music Awards

by Bongani Ndlovu | 25 November 2015 | 4692 Views

WATCH: Late Night show's analysis of Zanu-PF factional battles - LATE ...

by Staff reporter | 24 November 2015 | 3036 Views

Pregnancy won't stop me from flying, says Sandra Ndebele

by Bongani Ndlovu | 24 November 2015 | 4688 Views

Frustrated Hosiah Chipanga dumps Zimbabwe

by Staff Reporter | 24 November 2015 | 5900 Views

Miss Rural Goromonzi Crowned - It was a day to remember for the Goromo...

by Stephen Jakes | 24 November 2015 | 1894 Views

Heavily pregnant Sandy delays flight for an hour

by Staff reporter | 23 November 2015 | 8621 Views

Five Reliable Outlook Pst File Repair Tools

Outlook pst files can become corrupted -- and when that happens, work grinds to a halt. if your organization relies on outlook, one of these tools could save the day. outlook is the industry standard groupware tool. let's take a look at five that can... Read More
ITnews 04 May 2015 ago

What To Look For In Video Converter Software

looking for the best video converter software? you have to compare different video converters before making a purchase.the ability to watch video on different types of devices is a wonderful thing. not so wonderful are the compatibility issues that ... Read More
Sergey 19 June 2015 ago