African Sun Limited, a leading hotel asset management company in Zimbabwe, has announced a significant change in its strategy, involving the disposal of hospitality assets.
The Victoria Falls Stock Exchange listed company recently terminated its agreements with TD Hotels & Leisure (Private) Limited for the sale of Great Zimbabwe Hotel and Beitbridge Express Hotel, citing deteriorating trading conditions.
The Great Zimbabwe Hotel in Masvingo was initially slated to be sold for US$4.45 million, while the Beitbridge Express Hotel was priced at US$2.5 million.
However, the agreements have been terminated, and African Sun Limited is now exploring alternative options for disposing of these assets.
“The Board advises of the termination of the previously announced agreements with TD Hotels and Leisure (Private) Limited, classified as a Category 3 transactions. The Company will provide further updates on its future plans and any material changes thereto,” the company stated.
As part of its strategic shift, the company is negotiating the disposal of additional hospitality assets, which constitutes a “Category 1” transaction due to its significant size.
African Sun Limited has advised shareholders to exercise caution and consult professional advisers when trading in the company’s shares, as the transactions may have a material effect on the company’s shares.
“Further to the cautionary statement dated 10 September 2024, shareholders and the investing public are advised that in keeping with the strategy of unlocking value, negotiations for the disposal of a selection of hospitality assets are ongoing,” company secretary Venon Tongai Musimbe stated in a statement.
“The negotiations, if successful, 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.
“Shareholders and the investing public are advised to exercise caution when dealing with the Company’s securities until advised of the conclusion of the said ongoing process.”
The company’s portfolio includes notable hotels such as Monomotapa, Elephant Hills, Caribbea Bay, Hwange Safari Lodge, Holiday Inn, Troutbeck, and The Victoria Falls Hotel, which it co-runs with Meikles Limited.
Meikles Limited is also undergoing a similar process, disposing of some of its assets, with the decision pending shareholder approval at an Extraordinary General Meeting.
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