TNFS has a tradition rooted in dedicated client service and innovation. Some of the significant transactions executed by TN Financial Services since 2001 are listed below:
Econet Wireless Holdings Limited (“EWH”)
- In December 2004, TNFS successfully acted as a financial advisor to Econet Wireless Holding Limited (“EWH”) on a transaction seeking shareholder approval for the company to consolidate its authorized and issued shares. This was the first share consolidation to be done in Zimbabwe making the first precedent in the local market. Econet is the largest telecommunications company in Zimbabwe.
- In 2004 TNFS acted as the financial advisor to EWH on the acquisition of a 14% equity stake held by T.S Masiyiwa Holdings (Private) Limited in Mascom Wireless (Botswana) Proprietary Limited (“Mascom”), the largest mobile telecommunications company in Botswana. The transaction was valued at US$11.8 million. The transaction was a share swap transaction.
- In 2005 TNFS acted as a financial advisor to EWH in the disposal of the same 14% of the issued shares of Mascom that EWH had acquired through a share swap the previous year. The transaction was a cash transaction and TNFS successfully negotiated a US$2million premium for EWH. The transaction was thus concluded at a value of US$14 million. The proceeds from this transaction were instrumental to the growth that EWH has since registered in Zimbabwe.
- In 2009, TNFS acted as financial advisor to EWH in developing a financing structure and raising US$94 million used to finance the acquisition of telecommunication equipment required to implement the next phase of EWZ’s network expansion programme. The scope of work also included advising on regulatory approvals required, including exchange control and shareholder approvals.
The Cotton Company of Zimbabwe Limited , now AICO Africa Limited
- In 2001 TNFS successfully structured and arranged bridging finance for Tonje Employees Investment Limited (“Tonje”), a company that was formed for the management and employees of the Cotton Company of Zimbabwe Limited (“Cottco”) for the purpose of acquiring 25% of the issued share capital of Cottco form the Government of Zimbabwe. TNFS raised bridging finance amounting to $4.8 billion form the local financial markets, which was the consideration for the 25% shareholding acquired by Tonje. The transaction, valued at over Z$4.8 billion, then equivalent to US$ 23.2 million using the prevailing exchange rates was the largest and most successful employee buy in involving a company controlled by the Government of Zimbabwe in Zimbabwean history. The Cotton Company of Zimbabwe Limited is the largest cotton company in Sub-Saharan Africa. This success makes TNFS the best placed company to handle privatizations in the country should the country’s economy turn.
- In 2007, TNFS successfully acted as financial advisor to the Cotton Company of Zimbabwe Limited (“Cottco”) on the acquisition of all the business assets owned by Frupac International Zimbabwe (Private) Limited, a company involved in the processing, freezing and distributing of vegetables under an export processing zones license. The scope of our mandate involved conducting a due diligence, valuation and advising Cottco on the pricing or consideration payable for the assets, and handling the negotiations that resulted in the successful closure of the transaction.
Kingdom Financial Holdings Limited
- In May 2006 TNFS successfully acted as financial advisor to Kingdom Financial Holdings Limited (“KFHL”) on the rights offer to shareholders implemented to raise Z$1.5 trillion then equivalent to US$5 million required to capitalize its operating subsidiaries. This is the largest rights offer implemented by a company listed on the Zimbabwe Stock Exchange.
- In October 2007, TNFS successfully acted as financial advisor to KFHL on a transaction involving the offer to issue new Meikles Africa Limited Ordinary shares to shareholders of KFHL, Tanganda Tea Company Limited and Cotton Printers (Private) Limited through a scheme of arrangement. The transaction resulted in the merger of the four companies, creating what is arguably the biggest conglomerate listed on the Zimbabwe Stock Exchange. We handled the valuations of all the companies involved, the negotiations between the major shareholders of the companies involved, and the road shows to the shareholders of the companies involved. When initially one of the parties had failed to obtain the necessary shareholder support, our strategy to approach pension funds directly, and not through asset managers resulted in the successful closure of the transaction. Kingdom was eventually demerged from Kingdom Meikles Africa Limited due to discord between shareholders. This discors had been foreseen by TNFS, and the board of KFHL was fully advised about the potential for such discord and the shareholders of KFHL were advised to conclude a voting pool agreement to mitigate the effects of a potential fall out resulting from cultural differences. The transaction was valued at US$781.5 million.
Kingdom Meikles Africa Limited
- In October 2008, TNFS successfully raised debt capital required to finance an employee share purchase scheme for Kingdom Meikles Africa Limited employees. Adequate funds were raised through our placement power, when the other advisors that had been involved earlier had failed to mobilize sufficient support from financiers.
NBTS – EU Project
- TNFS acted as Technical Assistant to National Blood Transfusion Service (“NBTS”) in developing a costing and pricing model, reviewing its financial management and information technology systems, drafting a memorandum of understanding with the Government of Zimbabwe, facilitating the preparation of a 5 year strategic plan and budget 2005. The project was funded by the European Union (“EU”) under the Health Sector Support Programme II, 8 ACPZim – 091.
Reserve Bank of Zimbabwe
- TNFS acted as Financial Advisor to the Reserve Bank of Zimbabwe in the disposal of its 58.75% shareholding in Tractive Power Holdings Limited. The transaction valued at US$9.76 was successfully concluded in June 2012.
TN Bank Limited
- TNFS acted as Financial Advisor in the demerger of TN Bank Limited from TN Holdings Limited and the subsequent US$20 million recapitalization of the TN Bank in July 2012. The transaction also included the listing of TN Bank Limited on the Zimbabwe Stock Exchange and the change of name of TN Holdings Limited to Lifestyle Holdings Limited.