Tetrad Holdings Ltd shareholders this week unanimously gave the nod to the acquisition of a controlling stake in its banking unit — Tetrad Investment Bank (TIB) — by a Russian investor.
Sources told businessdigest that the board voted unanimously for the deal at the group’s Annual General Meeting held in the capital this week.
The transaction resolution came under special business of the AGM.
“The AGM was important for the transaction and it was unanimously voted for under special business,” said the source.
Under the transaction, the Russian investment group, Horizon Capital Consortium (HCC) led by businessman Sergey Pokusaev, will acquire a controlling stake in TIB.
The deal now awaits regulatory approvals.
TIB is set to continue with its plans to become a commercial bank. Information gathered by businessdigest suggests that Tetrad is not looking at having “serious” branch presence in the market.
A source said management at the bank would largely remain unchanged. Currently Eugene Mlambo, a key shareholder, is CEO and acting MD of the bank after another Tetrad boss Emmanuel Chikaka assumed responsibility at group level as chief operating officer.
The deal is expected to improve the bank’s capital position and unlock lines of credit for the institution.
HCC’s take-over of Tetrad comes hot on the heels of the Mauritius-based AfrAsia Bank Ltd’s increased shareholding in AfrAsia Zimbabwe Holdings Ltd to 62,5% and more recently the acquisition of ABC Holdings, which controls BancABC, by an international investor, Atlas Mara.
A Mauritius-based consortium also acquired a majority stake in troubled Allied Bank.
Commercial banks were initially required by the central Bank to have minimum capitalisation of US$100 million by 2014,
but this was later extended to 2020.
Tetrad has interests in the financial services sector, insurance, property, mining and other areas of commerce.
Efforts to reach Mlambo proved fruitless at the time of going to print as his mobile phone went unanswered.