New Zimbabwe.com

African Sun to exit Dawn Properties

ZIMBABWE’S largest hospitality group, African Sun Limited (ASL) will go ahead with the sale of its Dawn Properties shares to Lengrah Investments after the Zimbabwe Stock Exchange (ZSE) approved the transaction on Tuesday.
Last week ZSE said the deal had not been endorsed but bourse granted approval this week, allowing the transaction to go ahead.
An  EGM notice to be published on 21 March 2014 suggest that ASL will disposing of its 16.54 percent Dawn Properties linked units to Lengrah Investments for a cash consideration of US$5,97 million.
Net proceeds from this disposal will be applied towards reduction of short-term debt.
In addition, ASL expects “a further reduction of finance costs by US$986,711 per annum going forward in addition to the US$740,000 saving in finance costs per annum from the first disposal of 12 percent of the issued linked units in Dawn Properties”.
The board is also of the view that the benefits that will accrue from the disposal of the linked units will outweigh the impairment charge suffered by African Sun.Advertisement