African Sun Cautions Shareholders Ahead Of Takeover

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By Alois Vinga

TOP hotelier, African Sun Limited (ASL) has urged shareholders to exercise caution with the entity’s shares since the transaction to takeover Dawn Properties is still under consideration.

The development comes against a background where ASL has made an offer to snap up Dawn Properties in a deal that will see it assume ownership of the property firm’s key assets and its delisting from the local bourse.

Dawn Properties is owner of hotels leased by ASL. However, both companies are owned by Arden Capital, formerly Brainworks.

Should the acquisition be approved by shareholders, an application will be made to the Zimbabwe Stock Exchange (ZSE) for the voluntary delisting of Dawn Properties.

Dawn Properties Limited acting company secretary, Ndangariro Mutizwa announced the firm was still considering the offer from ASL whereby ASL seeks to acquire 100% of the issued share capital of Dawn Properties.

“Accordingly, shareholders are advised to exercise caution when dealing in the company’s securities. Further announcements will be made in accordance with regulatory requirements in due course,” he said.

Brainworks which recently rebranded to Arden Capital is a Mauritian-based JSE-listed holding company and held 57,67% shares in African Sun as of December 2018.

Dawn Properties hotels that are leased by African Sun include Monomotapa Hotel, Elephant Hills Resort and Conference Centre, Great Zimbabwe Hotel, Caribbea Bay Resort, Holiday Inn Mutare, and Hwange Safari Lodge.