Brainworks Capital makes mandatory offer to buy out Dawn minorities

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LOCAL private equity firm Brainworks Capital Management has made a mandatory offer to compulsorily buy out minority shareholders in Dawn Properties to complete its takeover of the Zimbabwe Stock Exchange-listed property concern.
Brainworks increased its stake in Dawn to 47,45 percent in March this year, breaching the stock exchange’s 35 percent mandatory offer threshold and triggering the mandatory offer.
In a circular to shareholders last week, Brainworks made its intention to buy out Dawn minority shareholders at a market price of $0,02 per share.
“Brainworks Capital hereby offers to acquire, on the terms set out in this Circular, from the Dawn Properties minority shareholders all or part of their Dawn Properties shares for the Offer Consideration. The Dawn Properties shareholders who accept the mandatory offer by the Closing Date shall receive $0,02 per share on the ZSE in terms of the mandatory offer,” the company said.
“The Offer Consideration constitutes a premium of 5,6 percent to the 30-day volume weighted average price and 12,8 percent to the 60-day volume weighted average price of Dawn Properties shares as at July 01, 2015.”
The mandatory offer opens for acceptance on Monday and will close on December 4, 2015.
Brainworks says it intends to keep Dawn listed on the local stock exchange.
“Dawn Properties shareholders who elect not to accept the mandatory offer, or elect to accept the mandatory offer in part, will remain shareholders of Dawn Properties,” said Brainworks.
Brainworks, which recently declared an interim dividend of $450,000 for the half year to June 2015, has a market capitalisation of approximately $86 million and boasts of largest investments in Dawn and African Sun Limited.
On the other hand, Dawn’s portfolio of assets currently comprise of hotels Crown Plaza Monomotapa, Elephant Hills, Troutbeck Inn, Carribea Bay Sun, Carribea Bay Marina, Beitbridge Express, Great Zimbabwe, Amber Hotel Mutare and Hwange Safari Lodge among others.Advertisement