AFRICAN Sun Limited shareholders have been advised to continue exercising caution when trading their shares since a mandatory offer to acquire the shares of minority shareholders by Lengrah Investments (Pvt) Limited is yet to be finalised.
BATANAI MUTASA OWN CORRESPONDENT
Lengrah trades as Brainworks Capital Management (BCM) Hotels and Real Estate.
In a further cautionary statement this week, African Sun advised its shareholders that the offer is being compiled in accordance with the Zimbabwe Stock Exchange (ZSE) listing requirements and would be announced to shareholders once completed and approved.
BCM Hotels and Real Estate is reportedly set to rebundle African Sun and property concern, Dawn Properties, in which it holds a 45% and 28% equity respectively.
ZSE rules stipulate that any shareholder who exceeds 35% has to offer to buy out minorities.
However, the deal was reportedly failing to materialise amid differences between the two groups centred on proposed sale of Elephant Hills Hotel and an alleged failure by Brainworks to inject $6 million into African Sun as previously agreed.
African Sun first advised shareholders in November 2013 that it had received a notice from Lengrah that it now controlled 36,51% in the hospitality concern and wished to purchase minority shares leading to speculations of a rift stalling the now prolonged process.
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Speaking to Southern Eye Business yesterday, African Sun chief executive officer Shingi Munyeza said reports were speculative and the deal was on course.
“It is a requirement that we publish the cautionary statement every 21 days until the deal is finalised and that is why we continue issuing them, so there is no problem stalling the process,” Munyeza said.
Dawn properties own most of the hotels managed by African Sun, including Elephant Hills Hotel, Holiday Inn Mutare, Crowne Plaza Monomtapa Hotel, Express Holiday Inn and Troutbeck Inn Nyanga.
