Breaking News

Econet to pays US$27 million to buy TN Bank

by Business Reporter
22 January 2013 | 5347 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

Should Miss World Zimbabwe have been dethroned?

Yes
34.78%
No
60.43%
Not sure
4.78%
230

Comments

News Updates

Email:

Latest News

TB Joshua Returns Tithe AGAIN!

by Ihechukwu Njoku | 08 July 2015 | 630 Views

Zimbabwean technocrat's exit package rattles SA parliament - ZIMBABWEA...

by Prosper Ndlovu | 08 July 2015 | 1505 Views

Bulawayo's dirtiest suburbs named - THE Environmental Management Agenc...

by Whinsley Masara | 08 July 2015 | 1225 Views

Woman stabs debt-ridden husband - POLICE are holding a Victoria Falls ...

by Leonard Ncube | 08 July 2015 | 894 Views

'Top cops running illegal mines' - BUBI Rural District Council has acc...

by Whinsley Masara | 08 July 2015 | 662 Views

Criminal defamation is a necessary evil, says Govt - CRIMINAL defamati...

by Daniel Nemukuyu | 08 July 2015 | 299 Views

Chinese national sues Zimbabwean magistrate for being biased - A disgr...

by Staff reporter | 07 July 2015 | 2145 Views

Obert Mpofu reads riot act - Board members who violated corporate gove...

by Staff reporter | 07 July 2015 | 2233 Views

Mugabe, Grace jets off to New York, US - President Robert Mugabe has l...

by Staff reporter | 07 July 2015 | 3657 Views

Zimbabwe Exiles angrily reacts to Malema's praise of Mugabe - The Zimb...

by Staff reporter | 07 July 2015 | 2667 Views

Of Jonathan Moyo and the Cabinet reshuffle - Am sure it is not the sub...

by Richard Mahomva | 07 July 2015 | 3788 Views

Grace Mugabe presidency unlikely - There is no doubt that Grace Mugabe...

by Conrad Nyamutata | 07 July 2015 | 4021 Views

Mugabe obsessed with power retention, says Biti - President Robert Mug...

by Staff reporter | 07 July 2015 | 2606 Views

US Embassy call for NPO proposals - The U.S. Ambassador's Special Sel...

by Machinda Marongwe | 07 July 2015 | 1770 Views

'I am rich but not a Satanist,' says Prophet Magaya - Prophet Walter M...

by Staff Reporter | 07 July 2015 | 5003 Views

'I was pretending to be holy,' says Nicholas Zakaria

by Staff Reporter | 07 July 2015 | 8318 Views

RBZ worker steal worthless Zimdollars

by Thobekile Zhou | 07 July 2015 | 3652 Views

MDC statement on Cabine reshuffle - Yesterday's cabinet reshuffle by P...

by Joshua Mhambi, MDC National Spokesperson | 07 July 2015 | 3553 Views

Kasukuwere tell city fathers that it is no longer business as usual - ...

by Staff reporter | 07 July 2015 | 5988 Views

Is Grace Mugabe's 'bedroom coup' a reality in Zimbabwe? - WHEN former ...

by Dumisani Muleya | 07 July 2015 | 4003 Views

Zimbabwe roads 'not for amateurs' - The state of Zimbabwe's roads is t...

by Marko Phiri I Reuters | 07 July 2015 | 1950 Views

'Shun 'thigh for a pass' culture,' students urged - FEMALE students in...

by Heather Charema | 07 July 2015 | 3379 Views

No problem with bedding under aged girls? - survey - Plan Internationa...

by Thobekile Zhou | 07 July 2015 | 3363 Views

Entertainment

Zim Models Awards nominees list out - The list for the inaugural Zimba...

by Staff reporter | 07 July 2015 | 1281 Views

Bigger and Better Women's Day Gospel Festival

by Entertainment Reporter | 03 July 2015 | 3698 Views

Silence Is Not Peace!, Says Bongani Ncube

by Nkosini Tshuma | 02 July 2015 | 4679 Views

Zimbabweans fail to answer a simple question like who is your former p...

by Staff reporter | 02 July 2015 | 5879 Views

Zim Achievers to host first ever winners and nominees reception - Win...

by Arts Correspondent | 02 July 2015 | 2586 Views

Team Bulawayo UK Shows cancelled - The Team Bulawayo UK shows which we...

by Thulani Nkala | 02 July 2015 | 3064 Views

DStv adds new channel for Zimbabwe viewers

by Staff reporter | 01 July 2015 | 11586 Views

Rihanna Duct Tapes Floyd Mayweather's Mouth Shut at BET Awards

by Staff Reporter | 30 June 2015 | 9759 Views
iBlog

Apple Watch Teardown Reveals Unique Hardware And Replaceable Parts

The apple watch may not be fine jewelry, but bill detwiler cracks it open and shows you why he thinks it's a fine piece of tech. the apple watch may be beautiful on the outside, but how about on the inside? in this cracking open installment, we go in... Read More
Sergey 11 June 2015 ago

Hp Omen 15-5116tx – The Next Generation Gaming Laptop

the hp omen 15-5116tx is being targeted at the performance hungry gamers. it comes in a single variant boasting an eye-catching attractive design. the notebook offers a slim, lightweight chassis and appears like a piece of art than an actual gaming... Read More
Sergey 11 June 2015 ago