7 February 2013

Zimbabwe: TN Bank to Delist From ZSE

TN Bank Limited will tomorrow delist from the Zimbabwe Stock Exchange after 96, 3 percent of the bank's minority shareholders accepted an offer from Econet Wireless Zimbabwe to acquire their stake. Minority shareholders held a total of 76 204 093 shares prior to the Econet Wireless offer.

But 72 542 997 TN Bank shares have since been exchanged for shares in the mobile phone operator, while 830 417 shares were exchanged for cash.

TN Bank said in a statement that Econet Wireless would deal with shareholders who did not accept the offer, in accordance with provisions of the Companies Act, but indicated that the bank would be delisted from the ZSE tomorrow.

"The offer by Econet Wireless Zimbabwe to buy out minority shareholders in TN Bank Limited, which closed on January 31 this year, was overwhelmingly accepted by TN Bank minority shareholders," TN Bank said in a statement.

Effectively, TN Bank is now a subsidiary of Econet Wireless Zimbabwe and will change its financial year to end on February 28.

Accordingly, it will release its financial results for the 14 months to February at a due date.

This followed TN Bank founder and major shareholder Mr Tawanda Nyambirai's acceptance of Econet Wireless offer for him to exchange his shares in the bank for a minority stake in the listed giant mobile telecommunications group.

Prior to the offer, Mr Nyambirai held at least 30 percent of the shareholding balance that Econet Wireless did not already own.

Econet Wireless offered US15,91c per TN Bank share or one Econet Wireless share for 28,79 TN Bank shares and sought to acquire the balance of 55 percent stake that it did not hold.

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 earlier.

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

After assuming strategic control of the bank, Econet sought to acquire the remaining 55 percent of TN Bank to align the bank's operations with the telecoms company's interests.

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.

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.

TN Bank administers the trust account that holds funds for Econet Wireless' EcoCash money transfer platform.

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