Tetrad loses Zimplow shares to creditor

Published: 05 December 2013

A TOTAL 4,5 percent Zimplow Holdings shares were offloaded yesterday on the Zimbabwe Stock Exchange after an investor foreclosed on a debt owed by Tetrad Holdings, the Herald reported.

During trades on the ZSE, a block deal of 30 million shares was pushed through at US3,27 cents by brokers MMC Capital representing around 4,5 percent of the total shares in issue of Zimplow of 622,7 million (Tetrad acquired the stake at US3 cents while the rights issue was conducted at US5 cents). The block deal was worth $981 000.

Well placed sources say Tetrad had pledged part of its shares as security after the group obtained loans from various investors in order to fund the rights issue.

Tetrad hold just over 38 percent stake in the group. However, the sources added that the group, which has been struggling as of late, only holds just under 30 percent of the group as the remaining shares are held as security against loans including with one of the country's major pension funds.

As was reported in Herald Business on Monday, Tetrad intends to dispose its 27 percent stake in agriculture and mining implements company to raise capital for its banking division, Tetrad Investment Bank.

"The group is looking for buyers of its shareholding in Zimplow and they are talking to a number of potential buyers," said one source who requested not to be identified.

"It has close to 39 percent but it can only sell 27 percent stake because some of the shares were pledged as security for money borrowed by the bank."

TIB is among the small indigenous banks that have been struggling to meet their financial obligations, including funding withdrawals. The others include Trust Bank and Metropolitan Bank.
- herald