THE Deposit Protection Corporation (DPC) has been forced to re-flight the tender for investors willing to buy Tetrad Investment Bank as there were no takers for the troubled bank, sources said.
BY BUSINESS REPORTER
Tetrad is under the provisional judicial management of the DPC.
Interested investors were supposed to submit their bids to Tetrad’s transaction advisors BDO Zimbabwe Chartered Accountants by August 21.
The reflighted tender says interested bidders have to submit their tenders by Friday.
“There have been no takers to the advert,” an informed source said. “There has been only inquiries by various parties, but none have come up with a formal offer to the tender and this has forced DPC to flight the tender again.”
Last year, the Reserve Bank of Zimbabwe suspended Tetrad from normal banking activities such as taking deposits and issuing out loans.
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Also last year, the bank had to seek the protection from the courts to ward off creditors and depositors who had obtained writs of execution to attach the bank’s assets after it had failed to honour its obligations.
A Russian investor, Horizon Capital Consortium, had shown interest in the troubled bank with a promise to inject $150 million.
A representative of the Russian investor, Munyaradzi Kereke, told a meeting of shareholders in April that the transaction was being considered at various levels in government.
Finance Bank of Zambia had also expressed a keen interest in buying the bank going as far as carrying out due diligence on the financial institution before pulling the plug on the deal.
AAY Investments Group, a Panama-based venture capital fund, had also expressed an interest in acquiring a stake in Tetrad.
The bank has assets worth $42,7 million against liabilities of $70 million.
The proposed sale of the bank comes as some creditors of the institution are pushing for a forensic audit into its affairs to improve the potential for recovery and accountability for assets.
The creditors, Tetrad Creditors Group, are owed a combined $8 million.
