African Sun to dispose of Great Zim Hotel for US$4,2m
Hotel group, African Sun Limited (ASUN), says it is disposing of its Great Zimbabwe Hotel and associated hotel business, located in Masvingo, for a gross consideration of US$4.2 million to Mewame Family Trust as part of capital-raising initiatives to expedite refurbishment of its several hotels.
African Sun, in an announcement to shareholders, said it has enjoyed a considerable turnaround in fortunes over the past four years post the Covid-19 pandemic, with several changes at the executive level over the same period.
“To expedite the refurbishment of several of the portfolio’s primary hotels, the Board deemed it necessary to complement capital-raising initiatives by selling selected assets, including The Great Zimbabwe Hotel, which has been a marginal contributor to the profitability of the group over the review period,” it said.
The company said the Mewame Family Trust approached African Sun and opened negotiations for the outright purchase of the business and assets relating to the Great Zimbabwe Hotel, culminating in an agreement of sale being executed on January 28, 2025.
Terms of the transaction are that Mewame Family Trust offered to purchase the Great Zimbabwe Hotel, being a certain piece of land known as Mundells Plot A, measuring 20.4272 hectares situated in the District of Victoria, held under title deed 1747/2010, for a gross consideration of US$3,200,000.
It also offered to purchase the hotel business and associated hotel assets housed at the Great Zimbabwe Hotel for a consideration of US$1,000,000 as a going concern.
African Sun said the material conditions precedent for the transaction relate to payment of the full consideration within the agreed periods, completion of a due diligence exercise and in the event required by the purchaser, Exchange Control approval and approval from the Competition and Tariff Commission by 01 April 2025.
“The purchaser shall pay the purchase price in full into African Sun’s nominated account on or before the agreed payment dates. The effective date of the transactions contemplated is 01 April 2025.”-ebsinessweekl
