African Sun seeks shareholder, regulatory approval
SAMANTHA MADE
African Sun Limited (ASL), the publicly listed hospitality group, is seeking shareholder approval for the disposal of the iconic Monomotapa Hotel in a transaction valued at US$18m, alongside regulatory clearance from the Competition and Tariff Commission (CTC).
The company confirmed that transactional agreements for the proposed sale have been signed. The deal has been classified as a Category 1 transaction under the Victoria Falls Stock Exchange (VFEX) listing rules, necessitating prior approval from shareholders.
ASL company secretary, Venon Musimbe, explained that the transaction is structured in two interlinked components. “The transaction involves two parts: Monomotapa Hospitality (Private) Limited, in which the Public Service Pension Fund has an interest, will acquire the hotel business and associated assets, while the Public Service Pension Fund will directly acquire the hotel land, buildings, and car park, as a single, integrated transaction,” he said.
Musimbe added: “The company placed the Monomotapa Hotel as well as the Caribbea Bay Resort on the market for sale. Transactional agreements for the disposal of the Monomotapa Hotel land, buildings, adjacent car park and associated hotel business as a going concern, for US$18 million (plus any applicable VAT), have now been signed, subject to the conditions precedent below.”
He further stated that: “As this disposal constitutes a Category 1 transaction, the next step will be to seek shareholder approval at an Extraordinary General Meeting (EGM), for which a detailed circular will shortly be published, to be convened at a date soon to be announced, as well as seeking approval from the Competition and Tariff Commission (CTC).”
ASL Group Chief Executive Officer, Lawrence Ward, confirmed that a circular will be submitted to VFEX for approval before the EGM is convened. “The group will be submitting a circular to VFEX for approval before convening an Extraordinary General Meeting to seek shareholder approval for the disposal of Monomotapa Hotel, while also awaiting approval from the Competition and Tariff Commission (CTC),” he said.
The proposed sale of Monomotapa Hotel is part of ASL’s broader asset disposal strategy, aimed at unlocking shareholder value and streamlining the group’s property portfolio. Over the past year, the company has listed selected properties, including the Caribbea Bay Resort, for disposal under this initiative.
In light of the pending approvals and ongoing processes, ASL has advised shareholders and the investing public to “exercise caution when dealing with the company’s securities until the conclusion of the ongoing processes.”
A comprehensive circular outlining the full terms and conditions of the transaction will be published in due course, with the date for the Extraordinary General Meeting to be announced thereafter.
