African Sun triggers VFEX exit to reclaim value, tighten control

STAFF WRITER

African Sun Limited (ASL), a publicly traded hospitality group, has secured shareholder approval to delist from the Victoria Falls Stock Exchange (VFEX), in a decisive move aimed at reclaiming strategic control, unlocking latent asset value, and repositioning for long-term growth.

Speaking at an extraordinary general meeting in the capital Harare, board chairman Lloyd Mhishi said the decision marks a deliberate shift to ensure the group retains full command over its future.

“Every move we have made, including our proposal to delist, is about ensuring that ASL remains the master of its own destiny,” Mhishi said.

“To the casual observer, this may look like a step backwards, but in reality, it is a necessary step to address a clear disconnect between our market valuation and the true value of our assets.”

He added that the group’s market price has failed to reflect both its operational performance and the intrinsic value of its prime hospitality portfolio.

Investor sentiment, he said, has increasingly pointed to the VFEX listing falling short on key expectations such as efficient price discovery and meaningful capital raising opportunities.

As part of the exit strategy, ASL is offering to buy back up to 40% of its issued shares at US$5.17 each, a 26% premium to the prevailing market price — presenting shareholders with an attractive exit window.

The group is now pivoting towards reinvestment in its flagship assets, including Elephant Hills Resort, Holiday Inn properties in Harare, Bulawayo and Mutare, as well as its strategic stake in The Victoria Falls Hotel.

“We have taken a deliberate decision to focus on what we do best, hospitality,” Mhishi said. “By concentrating resources on our high-performing assets, particularly in Victoria Falls, we believe we can enhance shareholder value and build a strong platform for future growth.”

The delisting comes amid mounting pressure across Zimbabwe’s hospitality sector, where operators are battling rising costs, shifting global travel patterns, and intensifying competition from smaller, experience-driven players.

This has contributed to Zimbabwe remaining one of the more expensive tourism destinations on the continent.

ASL, which listed on the VFEX in 2021 following a restructuring exercise, has grappled with low liquidity and thin trading volumes.

The move signals a broader recalibration within Zimbabwe’s tourism economy, as legacy hotel groups reposition themselves against agile boutique operators and constrained international funding flows.

In a bold capital commitment, ASL will shut down the iconic Elephant Hills Resort in November for an 18-month refurbishment and rebranding programme, with reopening targeted for the second quarter of 2028.

The upgrade, one of the most significant hospitality investments in Victoria Falls in recent years, is expected to transform the property into a world-class destination.