African Sun in bid to dispose more hospitality assets

AFRICAN Sun Limited, a company listed on the Victoria Falls Stock Exchange, has hinted on plans to dispose of more hospitality assets as a strategic step to unlock more value.

The matter is expected to be tabled before shareholders during an extraordinary general meeting on a date to be advised.

In March this year, the hospitality group board resolved to dispose of the Great Zimbabwe Hotel (GZH), while the Beitbridge Express Hotel (BEH) was held as an asset available for sale since September 21, 2021.

The company said negotiations were entered into concerning the Beitbridge Hotel and an Agreement of Sale was executed on the July 18, 2024.

Subsequently, negotiations for the sale of the Great Zimbabwe Hotel were held with the same prospective purchaser and an Agreement of Sale was executed on August 15, 2024.

Great Zimbabwe Hotel

In a cautionary statement yesterday, the firm said: “Further to the announcement to Shareholders on September 3, 2024, the directors of African Sun Limited 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 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,” it said.

The giant hospitality group further noted that as the transactions may have a material effect on the company’s shares, shareholders are advised to exercise caution and consult their professional advisers when trading in the shares of African Sun Limited.

African Sun, which is listed on the Victoria Falls Stock Exchange (VFex), said the disposal of Great Zimbabwe Hotel in Masvingo and Beitbridge Express Hotel for a combined US$6,9 million to TD Hotels and Leisure (Private) limited, an upcoming local hospitality concern was occasioned by the need to complement capital raising by selling selected assets considered not to be core to the group’s future.

VICTORIA Falls Stock Exchange

In 2023, African Sun posted an operating profit of US$3,74 million. However, the group recorded a marginal profit after tax from continuing operations of US$0,52 million.

African Sun is a renowned hotel asset management firm that trades on the VFex and presently, the hospitality concern manages 10 hotels strategically located throughout Zimbabwe. A Real Estate arm complements its core business.

Of the 10, the group owns seven properties which are: Holiday Inn Mutare, Monomotapa Hotel, Troutbeck Resort, Elephant Hills Resort and Conference Centre, Hwange Safari Lodge, GZH and Caribbea Bay Resort and leases three properties — Holiday Inn Harare, Holiday Inn Bulawayo and The Victoria Falls Hotel.-chronicles