via Econet acquires TN Medical – DailyNews Live 30 October 2014
HARARE – Econet Wireless Zimbabwe Limited (Econet) has wholly acquired TN Medical — owned by the group’s former chairman Tawanda Nyambirai — for an undisclosed amount.
This comes as Econet last year took over Nyambirai-founded TN Bank Limited, now Steward Bank, after increasing its stake in the financial institution from 45 percent to 97, 96 percent in a cash and share swap deal.
The telecoms group, Zimbabwe’s largest with nine million subscribers, has rebranded TN Medical to Steward Health.
While the TN Medical deal was conducted in March, Econet did not specifically mention the transaction in its recently published financials for the half year to August 2014.
However, the group stated that $80 million investments were made in the acquisition of property, plant, equipment and intangible assets.
Peter Mbizvo, Steward Health’s chairman, said the transaction is “in line with Econet’s wider strategy to form a financial services portfolio under the Steward banner”.
“Premised on the big agenda of financial inclusion, Steward Health has introduced six packages whereby there is an affordable plan for everyone,” he said.
Meanwhile, Steward Bank narrowed its loss in the half year to August 2014 to $3,7 million compared to $22 million registered in the comparable period last year.
The bank has been pivotal in the mobile telecommunications giant’s strategy to diversify its sources of income.
Oluwatomisin Fashina, Steward Bank’s chairman, attributed the loss to an extra-ordinary expenditure incurred in the ongoing business model re-alignment.
“This expenditure included costs incurred on the retrenchment of employees through a staff rationalisation exercise and the impairment of property and equipment as a result of the closure of marginal bank branches,” said Fashina.
Net interest income improved from $2 million in June 2013 to $2,2 million this year in light of better margins on lending products while non-interest income increased significantly to $7,5 million from a loss of $3,9 in the comparable period.
The Bank’s total assets increased by 31 percent to $138,7 million as at February 28, 2014 and deposits from customers grew by 63 percent from $62,1 million to $100,1 million.
Fashina noted that Steward Bank closed the period under review with a capitalisation of $51,3 million against a minimum capital requirement of $25 million.
Following the bank’s accreditation to MasterCard and Zimswitch, the bank had managed to deploy 35 automated teller machines (ATMs) and
4 452 point of sale devices in the country’s major commercial hubs.
“With the successful implementation of this project, we have created a suistainable base for deriving increased fee income going forward,” he said.
Going forward, Fashina said the bank was now in a unique position for the promotion of a cashless economy required to counter the debilitating impact of the current liquidity crisis prevailing in the country.