Diversified financial services group TN Holdings (TNH) plans to dispose part of its shareholding in TN Bank if ongoing negotiations with a potential investor succeeds.
TNH last week issued a cautionary statement advising shareholders to exercise caution when dealing in the companys shares.
The directors of TN Holdings Limited would like to advise shareholders that they are involved in negotiations with a third part, which if successfully concluded will have a material impact on TN Bank Limited, said TN Holdings company secretary Lorcadia Chakurira.
TNH group chief executive officer Tawanda Nyambira confirmed the development on Tuesday.
We are in talks with investors and I cannot disclose the investors to you now.
But what I can tell you is that they will not acquire more than 49% of TN Holdings, he said.
He could, however, not disclose whether the investors were local or foreign.
Nyambirai said this would reposition TN Bank and will enable the bank to be among the top four banks in the country.
As of December 31 2011, TN Bank had a market capitalisation of $13,3 million.
In the six months to June 30 2011, TN Bank deposits more than doubled to $49 million from $22 million during the same period in 2010. Early this month the group announced plans to venture into supermarkets and fast-food business in an aggressive strategy meant to strengthen, TN Banks deposit base.
The launch of these cash-generating businesses is expected to strengthen TN Banks deposit base and its contingency liquidity support structures, the group said then.
It said the main goal of the bank was to leverage on the location of these premises to deliver banking services to the unbanked in line with the encouragement from both the central bank and the Ministry of Finance.
Since its reverse takeover of Tedco in 2009, TNH has been on an expansion drive to bring deposits into the bank through various products.
Under its furniture business, TN Harlequin Luxaire, the group allowed civil servants to buy furniture on credit, ensuring TN Bank of ready monthly deposits.