RTG inches closer to finalising US$7m Montclair deal
BUSINESS REPORTER
Hospitality group, Rainbow Tourism Group (RTG), says it is close to finalising a deal to acquire Montclair Hotel and Casino (Private) Limited in Nyanga district, Manicaland Province, Business Times can report.
The development was confirmed by an RTG board member on the sidelines of the hospitality group’s recent annual general meeting.
“We are finalising the acquisition of Montclair Hotel for about US$7m. The deal should be closed soon,” the board member who requested not to be named told Business Times.
Recently, RTG, issued a cautionary statement to shareholders and the investing public saying the group was acquiring a business in the tourism industry.
“The board of directors of RTG wishes to advise all shareholders and the investing public that the company is currently engaged in negotiations for a potential transaction involving the acquisition of a complementary business. If successfully concluded, the transaction may have a material effect on the price of the company’s securities,” company secretary Tapiwa Mari said.
He added: “Shareholders are therefore advised to exercise caution and to consult their professional advisers when dealing in the company’s securities until finalisation of the aforementioned matter.”
The development comes at a time RTG is also setting up an offshore technological centre in Dubai in order to access the best technology available worldwide and to procure smartly.
RTG is currently seeking regulatory approvals. RTG has since engaged consultants to carry out additional research in Dubai.
Dubai is a major international hub for travel and tourism.
CEO, Tendai Madzivanyika told Business Times that RTG has begun the process of obtaining regulatory approvals.
He said the hospitality group has also engaged consultants.
“We have already begun to ask the authorities for regulatory approvals, including those from the central bank. We have been doing further research and we have engaged consultancy to advise us on the best set up, and on the best instruments because Dubai has tax-free zones.
“It has got mainland and offshore companies and each of those have advantages and disadvantages. So, whether you go in as a mainland company or an offshore company, there are positives and negatives. So one has to make sure that you are clear about which is the best model for the particular business,” Madzivanyika said.
