By Marshall Bwanya
Harare – African Sun Limited, a leading hospitality group, has announced plans to further streamline its operations through the disposal of additional non-core assets.
This move follows the recent sale of the Great Zimbabwe Hotel and Beitbridge Express Hotel to TD Hotels for a combined US$7 million.
The company cited deteriorating trading conditions as the primary reason for divesting these two properties.
African Sun’s current portfolio includes notable properties such as Monomotapa, Elephant Hills, Caribbea Bay, Hwange Safari Lodge,Holiday Inn, Troutbeck, and The Victoria Falls Hotel (co-run with Meikles).
The proposed asset disposals are considered “Category 1” transactions, requiring shareholder approval due to their significant size.
An Extraordinary General Meeting (EGM) will be convened to obtain the necessary consent from shareholders.
In a statement, African Sun’s board of directors explained that the asset disposals align with the company’s strategy of unlocking value and enhancing financial performance.
“Further to the announcement to Shareholders on 3 September 2024, the Directors of African Sun Limited (the ‘Board’ and the ‘Company’) wish to advise all Shareholders and the investing public that in keeping with its strategy of unlocking value, the Company has entered into negotiations for the disposal of additional hospitality assets,” the company noted.
“The proposed disposals will constitute a ‘Category 1’ transaction, accordingly, the Company would be seeking the approval of its Shareholders at an Extraordinary General Meeting (“EGM”) to be convened at the appropriate time.
“Further details will be provided to Shareholders once all the negotiation processes have been concluded,” further said the company.
Shareholders are advised to exercise caution when trading in African Sun’s shares, as the asset disposals could have a material impact on the company’s financial position and share price.
It’s noteworthy that Miekles Limited, another prominent Zimbabwean conglomerate with interests in retail and hospitality, is also exploring the sale of certain assets.
Given the similar nature of their businesses, Miekles’ actions may have implications for African Sun’s strategy and market dynamics.
