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Zimbabwean mobile phone operator, Econet, has revealed it plan to acquire the entire shareholding of TN Bank through a share swap deal

The company has integrated its mobile money transfer service, EcoCash, to the bank and companies that have signed agreements to take EcoCash payments instead of cash redeem at the financial institution.

Zimbabwean financial institution, CBZ Holdings, will also integrate into the EcoCash system.

Econet already has 45 per cent of TN Bank and has expressed a desire to acquire the remaining shares through the share swap of one Econet ordinary share for every 28.79 bank shares.

The minority shareholders, with a combined 30.46 per cent shareholding, have indicated they would accept the offer.

TN Bank founder Tawanda Nyambirayi said he had already accepted Econet’s offer.

In a statement, the telecoms company said, “The transaction has no material effect on the earnings per share and net interest value of TN Bank Limited.

“Econet Wireless Zimbabwe (EWZ) will pay for the TN shares using EWZ shares in its treasury stock and there will be no issue of new shares. The transaction will have no material effect on the earnings per share and net assets of EWZ.”

Econet said apart from approvals from the shareholders, it had made an application to the Reserve Bank of Zimbabwe to approve the company holding of up to 100 per cent of TN Bank.