The hospitality group African Sun Limited, owned Monomotapa Hotel, which had been placed on the market, has been acquired by the Public Service Pension Fund for US$18 million.
The sale, part of a value-unlocking strategy, follows a broader divestment plan that has seen the hotel giant list several of its key properties for disposal, including the Beitbridge Express Hotel, Great Zimbabwe Hotel, Caribbea Bay, and Monomotapa Hotel.
African Sun Limited sold the Great Zimbabwe Hotel and its related operations, along with the Beitbridge Express Hotel, for US$6.94 million to TD Hotels & Leisure (Pvt) Limited, as part of its efforts to raise capital through the disposal of non-core assets.
The company informed shareholders and the investing public through a cautionary statement.“Pursuant to the above, the company placed the Monomotapa Hotel as well as the Caribbea Bay Resort on the market for sale. Transactional agreements for the disposal of the Monomotapa Hotel land, buildings, adjacent carpark, and associated hotel business as a going concern, for US$18 million (plus any applicable VAT), have now been signed subject to the conditions precedent below,” read the statement.
The Public Service Pension Fund, through Monomotapa Hospitality (Private) Limited, has acquired the hotel business and associated assets, while separately purchasing the hotel land, buildings, and car park in a single, integrated transaction.
African Sun is set to seek shareholder approval for the transaction through an Extraordinary General Meeting to be held in due course. Furthermore, approval from the Competition and Tariff Commission has been sought.The transaction, which qualifies as a Category 1 disposal, is intended to unlock shareholder value in line with the company’s corporate strategy.
A detailed circular outlining the terms of the deal will soon be published, ahead of the Extraordinary General Meeting to be convened on a date to be announced. Until the transaction is finalised, shareholders and the investing public are urged to continue exercising caution when trading in the company’s securities.
By order of the Board,V. T. MusimbeCompany Secretary and Governance Executive
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