African Sun seeks shareholders’ approval for Caribbea Bay disposal

CLOUDINE MATOLA

African Sun Limited (ASL), the country’s publicly traded hospitality group, is seeking shareholder approval for the disposal of its Caribbea Bay Resort business and related assets to the Public Service Pension Fund (PSPF), Business Times can report.

In a circular to shareholders, the company confirmed that it has convened an Extraordinary General Meeting (EGM) on March 4, 2026, to allow shareholders to vote on the proposed transaction. The completion of the deal is also subject to approval from the Competition and Tariff Commission (CTC).

“The implementation of the Proposed Transaction is conditional upon the following: the passing by Shareholders of the Resolutions, by the requisite majority, at an EGM to be held on Wednesday 04 March 2026 in terms of the Notice of the EGM published on Tuesday 10 February 2026; the Purchaser having paid the full purchase price into Escrow as per the agreed date in the Transaction’s Sale and Purchase Agreements; CTC notification or requisite approval as condition subsequent; and obtaining all such other necessary regulatory approvals as may be required,” ASUN stated.

ASUN chairman Lloyd Mhishi said the primary rationale for the asset disposal is to free up capital for the refurbishment of the company’s key properties, including Elephant Hills Resort, The Victoria Falls Hotel, and Holiday Inn Hotel, ensuring they remain competitive in the global tourism market.

“The proposed Disposal is primarily intended to unlock capital that will be reinvested in the refurbishment and enhancement of key strategic assets within African Sun’s portfolio, including the Elephant Hills Resort, Holiday Inn Hotels, and The Victoria Falls Hotel. These upgrades are central to the Company’s commitment to delivering exceptional guest experiences and maintaining internationally competitive hospitality standards,” Mhishi said.

He further explained that the transaction would allow African Sun to focus on its core strategy by divesting underperforming assets and reinvesting in profitable areas.

“Proceeds from the Transaction will significantly bolster African Sun’s liquidity, enabling the Company to fund critical capital expenditure initiatives and the recently approved general share buyback scheme. This improved financial flexibility will reinforce the Company’s balance sheet, support long-term sustainability, and enable continued investment in core business operations.

“The Disposal supports the Company’s shift to a smaller, high-quality hotel portfolio, enabling greater operational focus, scalability, and profitability. Also, the Disposal represents a prudent and forward-looking decision. The Transaction will allow African Sun to reallocate resources to higher-performing assets and locations with stronger growth potential, thereby optimising the Company’s asset portfolio and enhancing shareholder value.

“The Board is confident that the Proposed Transaction is in the best interests of African Sun and its Shareholders. The Proposed Transaction will allow the Company to unlock value from underperforming assets, refocus on its core strategy, and invest in key areas of growth and profitability,” Mhishi added.