Lifestyle Holdings to exit Zambia

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ZAMBIAN investors have expressed keen interest in taking over the Zimbabwe-based Lifestyle Holdings (formerly TN Holdings) franchise as the group plans to exit the market, a senior official has said.

Report by Victoria Mtomba

Lifestyle Holdings founder Tawanda Nyambirai opened TN Medical Fund Zambia last year to offer medical services to that market.

Nyambirai told NewsDay last week that he was in discussions with Zambian officials interested in taking over the company.

“The price is favourable and we think it’s good that (the business is) managed by Zambians. We will exit Zambia as TN Holdings, but the franchise will continue to be there,” he said.

It, however, could not be immediately established how much the investors were offering.

Nyambirai said the company was rationalising its distribution network in line with its new business model that was now structured around the fast-foods business.

“We are coming up with a new model because our old model was structured around TN Bank. We have realised that the bank is no longer at the centre of our distribution channel,” he said.
Nyambirai said the fast-foods business was competitive and plans were afoot for the company to grow the business.

He acknowledged the poor performance of the share price attributing it to the uncertainty surrounding the direction the company would take after the disposal of TN Bank.

“Our share has not done so well because customers do not understand our new model. The shareholders need to understand what our new model is now,” he said.

Lifestyle Holdings’ share was listed in July 2012 at 2,5 cents and 172 million shares were traded.

Official statistics show that the share has lost 84% of its value since it started trading in July 2012.

The share last traded on January 28 at 1,6 cents.

Nyambirai demerged listed Lifestyle Holdings Limited from TN Holdings and listed it separately.The businessman recently sold his stake in TN Bank in exchange for shareholding in Econet Wireless. Econet Wireless injected $20 million into TN Bank last year and acquired a 45% stake.

TN has supermarkets, pharmacies and furniture retail outlets in the country.

11 COMMENTS

  1. Things fall apart for nyambirai, business people can learn from his silly over ambitious unpractical models, his bank was on the verge of collapsing anyway if econet hadnt come in. nyambirai is a brilliant corporate lawyer and should stick to that. as far as business is concerned he is a proven failure!

  2. I have always questioned his business model from start and I am not surprised his closing branches even here in Harare,He`s also retrenching staff and slashing salaries.

  3. A number of local entrepreneurs had fled the Zambian market citing an unfriendly regulatory regime when TN ventured and was advised so. Nevertheless they thought they would make it. Things fall aprt for TN for sure, even in the local market branches are closing, whats really happening.

  4. what you do not understand is that tawanda nyambirai is an entrepreneur with the idea of starting companies making money and leaving. as we speak right now that TN thing is not even his main focus anymore. after having sold the tn bank to econet he went to acquire a stake in econet holdings making him a minor shareholder. tawanda nyambirai is a business man and anything that is not profitable is not business. mind you he sold tn bank to econet bthe time when its share price was at an all time high is that not making money and sense at the same time. of cource lifestyle holdings is not perfoming but dont forget that its not even his main focus as at the time he became econet minor shareholder….

  5. so today you are busy questioning his business models but, when he was business man of the year and when he became econet chair did we all not commend his aggressive marketing strategy…..?

  6. rhard I presume you don’t run even the smallest of enterprises and I presume that your understanding of corporate finance, strategic management and general business management is very shallow. Starting companies is very different from running them, that’s why most CEOs are running businesses which they never started. Tawanda Nyambirai is a great lawyer and entrepreneur but his understanding of basic economics is very bad, and his model does not work.

    • i agree rhard should also get his facts ryt the share price was at its all time low when econet concluded the deal, when they listed in july last year it was at 32 cents per share and dropped to 16 cents per share in less than 3 months.

    • Nyambirai gave up his interest in the bank in exchange for a minority interest in the global operations of Econet Wireless. what he has became worth now is more than what he was worth when tn bank and lifestyle holdings were still together. honestly nyambirai is a business man and a good one for that matter. would he rather have battled a 100 million dollar chase which was an impossible task or rather sell off his shares and assume a higher calling on a global scale.

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