TN Holdings says it is planning to lease out its Zambian medical subsidiary, TN Medical Fund Zambia, to that countrys local investors.
TN Holdings chief executive officer Tawanda Nyambirai said they decided to pull out of Zambia due to government red-tape.
It took us too long to get a licence. We spent almost a year without a licence for TN Medical Fund Zambia and yet we were incurring costs, said Nyambirai.
I will be going to Zambia this month and see if I can seal the deal. We have already found suitors. The partners will own the business 100%. We will agree on the terms, but that is subject to regulatory approvals.
He said TN Medical was profitable and the holdings company was working towards growing it.
TN Medical Fund Zambia, funded to the tune of $500 000, was the groups first regional operation.
The medical fund company obtained regulatory approvals in 2010 and became operational in November 2011.
Unlike other medical aid societies, the medical fund provides customers with money for unclaimed contributions.
The diversified group has spread its tentacles to most key sectors of the economy. Some of its operations include TN Medical Benefits Fund Zimbabwe, TN Financial Advisory Services, TN Asset Management, TN Bank and TN Harlequin.
Meanwhile, the company will by June this year demerge and list TN Bank separately on the Zimbabwe Stock Exchange.
Nyambirai said the company will demerge the bank first and the furniture business will be second in line.
Next is the furniture company, but we need to merge TN Harlequin and Pelhams where we have a 56% stake. But this is subject to Competition and Tariff Commission approvals. That will make the furniture business a standalone, he said.
The group recorded an increase in revenue for the year ended 2011 to $66,99 million due to growth in retail and manufacturing.
The two subsidiaries contributed $50,3 million to the group, while the bank accounted for $15,3 million in 2011.