African Sun move to VFEX on course
HOSPITALITY group African Sun Limited is expected to delist from the Zimbabwe Stock Exchange (ZSE) today as it is on course to migrate to the US dollar denominated Victoria Falls Stock Exchange (VFEX).
ZIMBABWE Stock Exchange (ZSE)
The hotel group is expected to make its debut on VFEX on 14 April.
At an Extraordinary General Meeting on March 28, shareholders gave a green light to the migration process.
The firm says listing on VFEX will expose it to US dollar equity and debt capital to finance its hotel renovation and expansion projects. The group has indicated one of its focus areas is enhancing guest experience and consolidating its market share.
African Sun is the largest hospitality company in Zimbabwe that operates 10 hotels, including internationally recognised brands.
In a circular to shareholders dated 8 March, board chairperson Dr Emmanuel Fundira said migration to the VFEX will enhance the ability of African Sun to raise USD capital including foreign currency debt.
“The African Sun Board believes that migrating the company’s listing to the VFEX will bring significant benefits to both current and potential shareholders.
“Generally, listing on the VFEX will allow African Sun to gain access to a favourable exchange control regime that appeals to international investors. This regime is designed to make it easy for them to trade shares listed on the VFEX and repatriate both their capital and dividend earnings in USD.
“This feature is crucial for offshore investors who are looking to make long-term investments as it addresses a key concern regarding the current ZSE listing.”
Furthermore, he said that by migrating to the VFEX, African Sun will have access to a source of capital that is more aligned with its developmental needs than what is available through its ZSE listing.
The group is organised into five divisions — City and Country Hotels, Resort Hotels, The Victoria Falls Hotel Partnership, Sun Leisure and Real Estate.
Its hospitality portfolio includes The Victoria Falls Hotel (operated in partnership with Meikles Hospitality (Private) Limited), Elephant Hills Resort and Conference Centre, Caribbea Bay Resort, Great Zimbabwe Hotel, Hwange Safari Lodge, Holiday Inn Harare, Holiday Inn Bulawayo, Holiday Inn Mutare, Troutbeck Resort, Monomotapa Hotel and Sun Leisure Tours.
The bourse has experienced rapid growth in recent months and managed to attract migrations. This year Innscor Africa Limited and Axia Corporation Limited listed on the new bourse.
Seed Co Limited which had earlier shown interest to list on the new bourse, has since reversed its decision and will remain on ZSE.
VFEX, launched in October 2020, is a subsidiary of the ZSE established to kick start the Offshore Financial Services Centre (OFSC) earmarked for the special economic zone in Victoria Falls.-chronicle
