RTG purchase of Montclair Hotel and Casino for US$5 million almost complete

RAINBOW Tourism Group (RTG) is nearing a US$5 million acquisition of Montclair Hotel and Casino (Private) Limited in Juliasdale, Nyanga as it has signed a sale and purchase agreement for all ordinary shares of Briolette Services (Private) Limited, which operates the Montclair Hotel and Casino.

Montclair, a resort owned by a consortium of 23 indigenous shareholders, features an in-house casino, 85 rooms and a nine-hole golf course.

RTG has since advised shareholders on the transaction.

“The Board of Directors of Rainbow Tourism Group Limited (“the Company”) wishes to advise shareholders and the investing public that the company has signed a sale and purchase agreement for the acquisition of the entire issued ordinary shares of Briolette Services (Private) Limited trading as Montclair Hotel and Casino (“the transaction”), for a purchase consideration of US$5 million,” reads part of the cautionary statement.

RTG said the conclusion of the transaction is subject to fulfilment of various conditions precedent.

“The company is now engaged in the necessary processes to finalise and execute the sale and purchase agreement including satisfying all conditions precedent. If successfully concluded, the transaction may have a material effect on the price of the company’s securities. Therefore, shareholders are advised to exercise caution and to consult their professional advisors when dealing in the company’s securities.”

RTG is one of the largest tourism companies in Zimbabwe, listed on the Zimbabwe Stock Exchange, (ZSE) and has an extensive portfolio of owner-managed and leased hotels and conference facilities throughout Zimbabwe.

Early this year, it entered into a key strategic partnership with a Switzerland – based international hospitality company, the Grand Metropolitan Hotels BV (GMH).

GMH is a Dutch registered private company with limited liability incorporated under Dutch law and headquartered in Roermond, the Netherlands.

The partnership will position RTG as one of the largest hospitality companies in Africa through this expansion, which will focus on management contracts, franchises, leases and affiliations as well as the exploitation of online opportunities.

It entails forming various joint venture entities and leveraging various opportunities within the hospitality and tech industries throughout the African continent.-ebsinessweekl