First Capital Bank Limited says it has received exchange control approval for the US$30 million disposal of Makasa Sun (formerly The Kingdom Hotel) in Victoria Falls and is now awaiting the remaining regulatory approvals to complete the transaction.
The Victoria Falls Stock Exchange-listed bank and its co-shareholder, First Capital Bank Staff Pension Fund, last year announced that it has agreed to sell its entire shareholding in Makasa Sun to ASB Hospitality LLC of the United Arab Emirates (UAE) in a transaction valued at US$30 million.
ASB expansion comes as Zimbabwe’s tourism industry is in a strong recovery phase, experiencing significant growth in international arrivals and revenue, and has recently been recognised globally as a top tourism destination.
The UAE-based hotelier has already secured a foothold in Zimbabwe’s fast-growing tourism industry following its acquisition of the iconic Meikles Hotel in Harare in 2019, later rebranded Hyatt Regency The Meikles Harare.
The tourism sector is benefiting from Government support, such as incentives and the creation of special economic zones, and is attracting investment despite global headwinds
The deal will see First Capital Bank and its co-shareholder dispose of all ordinary and preference shares they currently hold in the hotel company, whose main asset is the Kingdom Hotel in Victoria Falls.
“ . . . the transaction has now received exchange control approval and is currently awaiting the remaining regulatory approvals,’’ reads the bank’s latest circular.
Under the terms of the agreement, ASB Hospitality will become the 100 percent shareholder of Makasa Sun once the conditions precedent are met.
The sellers have already received a US$3 million deposit, placed in escrow pending regulatory and competition approvals. The remaining US$27 million will be paid out on completion of the deal.
In addition to exchange control approval from the Reserve Bank of Zimbabwe, which has now been secured, the transaction remains subject to competition clearance from the Competition and Tariff Commission and the COMESA Competition and Tariff Tribunal, as well as capital gains withholding tax clearance from the Zimbabwe Revenue Authority.
In October 2024, Makasa Sun had a consolidated net asset value of US$27,98 million. First Capital Bank holds a 50 percent economic interest in the company, valued at approximately US$15 million, with the remaining stake held by the First Capital Bank Staff Pension Fund.
The bank has classified Makasa Sun as a dormant entity and does not consolidate it into its group financial statements.
According to the bank, the disposal is not expected to have a material impact on earnings, headline earnings per share, net asset value per share or net tangible assets, aside from adjustments related to transaction costs and taxation.-herald
