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By Staff Reporter

BRITISH tycoon and key Zanu PF financier Nicholas van Hoogstraten has bought into Zimbabwe's tourism sector after acquiring key equity in the Rainbow Tourism Group (RTG).

The business mogul, reputed to be an ally of President Robert Mugabe, has swooped on the Zimbabwe Stock Exchange-listed RTG following an unwillingness by other shareholders to follow their rights.

Last month RTG made a renounceable rights' offer to shareholders in a bid to raise $80 billion.

The offer opened on 19 September and closed on 30 September.

According to RTG's new share register Van Hoogstraten's Messina Investments has 2.17 % with 35 727 640 shares.

Foreign investors - notably Accor Afrique and Libyan Arab African Investments Company (LAAICO) - have reduced their stake in the hospitality concern to 9.08% and 3.65% respectively. Initially Accor Afrique and LAAICO had 34.20% and 13.84% shareholding respectively.

Initially, Accor Afrique had 34,2% but now has 9,01%, whilst LAAICO had 13,83% but now only has 3,65%.

Existing shareholders took up 42% of the rights offers shares, rights offer shares taken up by underwriters and subsequently placed with institutional investors accounted for 52% while underwriters took up 6% of the rights offer shares.

Rights offer proceeds will be used for refurbishment of the group's facilities, which will gobble $45.6 billion. RTG has indicated that Touch the Wild lodges require investments in both furnishings and entertainment facilities " in order to make them suitable for the newly identified local corporate and leisure market".

Working capital financing will chalk up $13.6 billion of the proceeds, regional investments and IT upgrade will account for $8 billion apiece with expenses of the rights offer taking up $4.8 billion.

While there are new shareholders into the hospitality group such as chairman Ibbo Mandaza (0.35%) and optician Solomon Guramatunhu (0.23), Van Hoogstraten's acquisition has consolidated his grip on ZSE stocks. The business magnate has over 30% shareholding in Hwange Colliery Company, about 7% in CFI Holdings and is the single largest shareholder in NMB.

Van Hoogstraten - who has relocated to Zimbabwe from the UK - has courted controversy internationally by describing President Mugabe as "100% decent and incorruptible".

He is also alleged to have boasted "the only purpose of creating great wealth like mine is to separate oneself from the rif-raff." - The Standard
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