A bid from mobile operator Econet Wireless to raise its shareholding in Zimbabwe-listed TN Bank to 100% has been approved by the bank.
The move follows an offer from Econet’s founder and majority shareholder, Strive Masiyiwa, to raise the telecom firm’s share in the financial services company from over 45%. Masiyiwa has offered to buyout TN Bank shares from TN holdings founder and majority shareholder Tawanda Nyambirai.
Nyambira has subsequently also resigned from his post as independent chairperson for Econet Wireless. Veteran American telecoms executive Dr James Patrick Myers has reportedly been appointed the non-executive chairman of Econet Wireless Zimbabwe to replace Nyambirai
If Masiyiwa's deal is successful, the bank would have to delist from the Zimbabwe Stock Exchange (ZSE) owing to it becoming a subsidiary of Econet.
The deal, though, has yet to be approved by the Zimbabwean Competition and Tariff Commission (CTC), the Securities Exchange Commission of Zimbabwe (SECZ) and the Zimbabwean Central Bank (RBZ).
Econet is the biggest telecommunications operator in Zimbabwe, with approximately 7 million subscribers.
TN Bank, which was founded in 2009, acts as a ‘super-agent’ for the Econet’s mobile money product EcoCash.
Analysts say Econet’s move to buy the remaining stake in the bank has been in the making since TN Bank was demerged and separately listed earlier this year.
In July, Econet also injected $20 million into TN Bank, in a deal that saw the company list on the ZSE.
At the time, Nyambirai said that the move to have Econet acquire a shareholding in a banking institution anticipated "the integration between telecommunications and banking".
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