THE Zimbabwe Stock Exchange (ZSE) yesterday ordered the regional hotel group African Sun to withdraw its statement on the proposed disposal of Dawn Properties shares until the deal has been formally approved by the local bourse.
The company last week announced plans to dispose of 406 466 976 Dawn Properties limited shares to Lengrah Investments.
However, the ZSE said the disposal plans were not in line with the listings rules.
Part of the statement reads: “In terms of Section 9 of the ZSE listing rules, the proposed transaction is Category 1 transaction that requires shareholder approval. The circular and notice thereon for the proposed transaction had not yet been approved by the ZSE for distribution to shareholders in accordance with the ZSE Listings rules at the time the notice was published.
“The ZSE therefore directed African Sun limited to issue a retraction statement for the special business section of the annual general meeting notice until the approvals have been obtained,” the ZSE said in a statement.
African Sun immediately published a retraction circular reversing the proposed transaction.
“A separate notice for shareholders meeting will be made in due course for the purpose of obtaining the requisite shareholder approval of the transaction as required, pursuant to the Zimbabwe Stock Exchange listing requirements,” African Sun said in a statement.
Last year, the ZSE ordered African Sun to republish its financial results after the group failed to provide a detailed account.
The group last year disposed of 294 705 134 shares in Dawn Properties for $4,3 million to Lengrah Investments — a hotel and real estate investment company. Lengrah is a subsidiary of Brainworks Capital and the transaction was meant to reduce the group’s short-term debt.
Dawn Properties also sold its 12% stake to Brainworks which in turn bought a stake in African Sun.