Tetrad gets $31m capital boost

HARARE - Tetrad Holdings Limited (Tetrad) has received a $31 million recapitalisation boost from its shareholders.

Its chairperson Miccah Moyo said the group recapitalised its subsidiaries with capital injections of $30,7 million into Tetrad Investment Bank (TIB), $0,6 million to Multiridge and $0,025 to Tetrad Financial Services.

“The capitalisation was made to strengthen the operations of the entities as well as preserve eroded value lost as the illiquid environment took a toll on general performance of some of the group subsidiaries,” he said in the group’s financials for the year to September 2013.

Moyo noted that during the period under review, Tetrad incurred a

$14,7 million loss compared to a $746, 644 profit realised prior year. “…the Bank (TIB) made an operating loss of $21,5 million compared to a loss of $571,204 in the comparative year. A comprehensive loss of $4,3 million was posted for the year in comparison to the comprehensive loss in the prior year of $407,361,” he said.

This comes as the diversified financial services group’s shareholders last week approved the takeover of TIB by a Russian investor, reportedly Horizon Capital Consortium, under a $50 million deal.

Tetrad held its annual general meeting last Monday which was closed to the media.

Last month, the group issued a cautionary statement, saying that a new investor would inject new capital into TIB, creating a strong foundation for the institution going forward.

Sources close to the development said the agreement had already been signed, subject to regulatory approval.

“Shareholders were unanimous on the need to recapitalise the bank,” said the source who spoke on condition of anonymity, adding that the group expected to receive regulatory approval for the purchase, given the current liquidity crunch on the domestic market.

Recently, Finance minister Patrick Chinamasa has said he is comfortable with foreign ownership of banks — in spite of the indigenisation law which requires that locals own 51 percent shares — because locals have no money to buy equity in financial institutions.

Tetrad group chief executive Eugene Mlambo and chief operating officer Emmanuel Chikaka were not available to comment.

 

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