Lifestyle to delist

HARARE - Lifestyle Holdings Limited (Lifestyle) – formerly TN Financial Holdings Limited - plans to delist from the Zimbabwe Stock Exchange (ZSE) after failing to raise capital on the local market.

The group, which recently set up TN Harlequin Luxaire International Limited (TNHLI) in Mauritius, intends to make Lifestyle a wholly-owned subsidiary of the new Mauritian unit, necessitating the delisting from the local bourse.

TNHHLI will acquire all the issued shares of Lifestyle — listed on the ZSE in 2010 — and raise capital for the group on the international market.

“Lifestyle Holdings requires capital to sustain its furniture business and expand its fast foods division,” said Harry Cantor, Lifestyle’s chairperson.

“Its efforts to raise capital on the Zimbabwean market have not yielded any results because of the lack of long term funding,” he said, adding that “efforts to raise capital on the international markets have also proved fruitless as international investors have refused to invest citing the Zimbabwean sovereign risk.”

Cantor said the transaction would involve the issue of new TNHLI ordinary shares in exchange for Lifestyle’s.

In this case, shareholders will be entitled to receive one TNHLI ordinary share for every 253, 12 Lifestyle ordinary shares held.

If the scheme is approved at a meeting to be held on March 15, 2013, Lifestyle will then seek termination of its listing on the ZSE.

“Alternatively a cash consideration of $0,0065 for every one Lifestyle ordinary share. This consideration will be paid in four equal instalments after every 90 days with the first payment date being 14 days after confirmation of the scheme by the High Court,” he said.

Recently, Lifestyle sold its subsidiary TN Bank Limited to Econet Wireless in a cash and share swap deal in which the latter increased its stake to 97,96 percent resulting in the de-listing of the financial institution from the local bourse.

Last year, Lifestyle’s chief executive Tawanda Nyambirai hinted that the group was making strategic plans to penetrate the regional market as part of efforts to increase revenue streams and unlock shareholder value.

“Much as we want to see ourselves expanding and satisfying the local market, we are also looking at making inroads in the regional market.”

The group has already made significant strides in securing markets outside the country and we have concluded and reached an agreement with a South African company to supply furniture in more than 30 outlets in South Africa,” he said then.

The company’s subsidiaries include TN Asset Management (Private) Limited, TN Harlequin Luxaire (Private) Limited, TN Financial Services (Private) Limited, TN Medical Investments (Private) Limited, TN Zambia Medical Support Services, TN Harlequin Luxaire Zambia, Pelham’s Limited and TN Medical Benefit Funds (Private) Limited. - John Kachembere

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