African Sun obtains order to acquire 5,2% shares in DPL

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By Alois Vinga

LISTED hospitality concern, African Sun Limited (ASL) has obtained a court order granting them greenlight to compulsorily acquire residual 5,2% shares whose owners had declined to dispose of in Dawn Properties Limited (DPL).

Last year, ASL offered to buy 100% stake in Dawn Properties, through a share swap that entailed issuance of 616 126 718 new ordinary shares to Dawn shareholders.

But in a circular to shareholders this week, ASL company secretary Venon Musimbe said a few shareholders holding onto 5, 22% stake had declined to surrender their shares.

“Pursuant to the Original Offer, DPL Shareholders representing 94.78% of the DPL issued ordinary shares accepted the Original Offer and surrendered their shares to ASL.

“DPL Shareholders holding 5, 22% of DPL issued ordinary shares did not accept the Original Offer,” he said.

ASL has therefore issued a Notice to Drag Along in terms of the country’s legal requirements as directed by a court order.

“Holders of the remaining shares are hereby notified that ASL obtained a court order in terms of section 238(2) of the Companies and Other Business Entities Act [Chapter 24:31]  under case number 1657/21  from the Magistrates Court in Harare on 14 March 2022.

“The effect of the court order is that ASL is entitled and bound to acquire all such remaining shares on the same terms that applied to the shares whose holders accepted the Original Offer,” said Musimbe in the circular.

Musimbe said for the avoidance of doubt, should a holder of the remaining Shares fail to submit the surrender form by 28 April 2022, ASL shall proceed to acquire all the unsurrendered Remaining Shares as it is entitled and bound to do so in terms of section 238(2) of COBE and the Court order.

“The unsurrendered Remaining Shares will all be acquired on the same terms of the Original Offer, and they shall be acquired by ASL on or before 3 May 2022,” he added.