TN Holdings Limited shareholders have approved the demerger of TN Bank from the holding company paving way for the unit separate listing on the Zimbabwe Stock Exchange.
TN Holdings chairperson, Harry Meyer Kantor said the demerger of TN Bank Limited from TN Holdings will correct the perception that TN Bank Limited had strayed into non-core activities.
“The demerger will allow the bank to put in place a separate specialized head office whose focus will not be stretched across a large number of diversified business operations,” he said.
“However the bank will continue to exploit the synergies that exist with TN Holdings Limited’s business units, although there will be clear red lines separating the operations of the businesses.”
As of Thursday, July 5, the top five shareholders for TN Bank were Econet Wireless Zimbabwe (62,3 %), Olive Trust (7,1 %), Mamre Trust (5,6 %), Reminant Trust (4,6 %) and Serene Trust (3,9 %).
On completion of the restructuring TN Bank will be recapitalized through an issue for cash of 62,3 million new TN Bank Limited ordinary shares to Econet Wireless Zimbabwe Limited at a price of US$0,3208 per share.
TN Holdings group chief executive Tawanda Nyambirai said, the separate listing of TN Bank Limited will provide an exit mechanism for TN Holdings Limited shareholders who did not wish to be invested in a banking operation.
“This will also meet the requirements of those shareholders who are required to invest only in listed entities,” he said.
“The separate listing will also unlock value for TN Holdings Limited shareholders as the directors believe that the company’s market capitalisation does not reflect the sum of the value of the group’s constituent parts.”