TN Bank to list separately on ZSE

result of the US$20 million capital injection by Econet Wireless Zimbabwe, which moves in to take up a 45 percent shareholding in the firm.
The demerger will result in TN Bank becoming an independent entity. Its directors will cease to be accountable to the directors of TH Holdings, the company said in a statement to shareholders yesterday. It will be on the basis of issuance of   76 203 638 TN Bank Limited ordinary shares to TN Holdings shareholders at a subscription price of       US$0,0000001 per share and an allotment ratio of one TN Bank ordinary share for every 10 TN Holdings shares held.
Subsequently, THL will convert 30 301 253 348 ordinary shares it holds into 3 030 ten percent irredeemable non-cumulative preference shares with a nominal value of US$1,00 per share.
The proposed US$20 million recapitalisation of TN Bank will see Econet Wireless getting 62 344 140 new TN Bank ordinary shares at a subscription price of US$0,3208 per share.
“On July 11, 2012 the authorised share capital of TN Bank Limited will comprise of 70 000 000 ordinary shares with a nominal value of US$0,0000001 each,” said THL.
Further, this will result in the listing and admission of the new issued shares in TN Bank Limited on the Zimbabwe Stock Exchange separately from TN Holdings.
TN Holdings said the ZSE has already granted permission for the listing of TN Bank Limited.
Prior to the demerger TN Bank was part of the large TN Holdings Limited, comprising TN Financial, TN Harlequin Luxaire, TN Zambia Medical Support Services, TN Luxaire Zambia Limited and TN Health Care Limited. But the demerger will be subject to shareholders giving their approval at an extraordinary general meeting on July 5.
TN Holdings cited the issue of perceptions on the operations of the bank for the demerger insisting that the bank was only leveraging on synergies between sister companies.
This included sharing infrastructure such as distribution network, sharing the head office resources and providing loans to customers of other companies in the group.
“This model has resulted in the reduction of the burden of occupancy costs as the occupancy costs of the common areas are shared between the furniture, the bank, the Econet franchise shops and other business units,” said THL.
Subsequent to the demerger of the bank from TN Holdings Limited, the latter will change its name to Lifestyle Holdings Limited.