LIFESTYLE Holdings has agreed on terms with Zambian investors keen to take over the franchise in that country as the group plans to exit the market. In an interview, Lifestyle founder Mr Tawanda Nyambirai said the agreement was now before the Reserve Bank of Zimbabwe for approval.
"We have made a signature agreement with the potential Zambian buyers and now await approval from the central bank," he said.
Mr Nyambirai could, however, not give the amount which they had agreed apart from saying the deal had better returns.
"The people who are buying the business are local people so in other words we are just converting the franchise," he said.
Mr Nyambirai said the company was streamlining its distribution network in line with its new business model that was now structured around the fast-foods business.
"Our old model was centred on TN Bank thus we have realised that the bank is no longer at the centre of our distribution channel and the fast-foods business was competitive," he said.
Lifestyle Holdings Limited was last year demerged from TN Holdings and listed separately.
Mr Nyambirai late last year sold his stake in TN Bank in exchange for shareholding in Econet Wireless.
Lifestyle Holdings Limited is listed on the Zimbabwe Stock Exchange and its subsidiaries include TN Asset Management (Private) Limited, TN Harlequin Luxaire (Private) Limited, TN Financial Services (Private) Limited, TN Medical Investments (Private) Limited, TN Zambia Medical Support Services, TN Harlequin Luxaire Zambia, Pelham's Limited and TN Medical Benefit Funds (Private) Limited.
Mr Nyambirai said registration of a new company, TN Harlequin Luxaire International Limited, in Mauritius was going on smoothly and was waiting for some formal procedures and clearance from the Securities Commission of Zimbabwe.
"Once the company is registered we will be able to raise money to finance its expansion," he said.
The group announced last year that it sought to raise US$10 million from offshore markets.