African Sun, Dawn Properties close acquisition deal.

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  • Deal commenced in September 2020
  • 91,6% of shares were surrendered as at 13 November
  • Deal expected to result in cost savings and improved liquidity for both sets of shareholders.

Hotelier African Sun Limited and property holding company Dawn Properties Limited have finally closed their acquisition deal which kicked off in September this year in which the former sought to acquire 100% of the issued share capital of the latter by means of a share swap.

The tabled resolution entailed issuance of 616,128,718 unissued African Sun ordinary shares to existing Dawn shareholders at a swap ration of 1 African Sun ordinary share for every 3.99 Dawn shares held.

This swap valued African Sun to be worth 4 times the value of Dawn Properties despite the latter a Net Asset Value that was ahead that of African Sun.

The proposition was accepted at an Extraordinary General Meeting held in October with over 96% voting in favour of the acquisition.

Subsequently, African Sun shares rose by 14.63% after the proposed offer was approved.

The offer opened on the 23rd of October and closed on the 13th of November. During this period over 91,06% (2,237,443,354 ordinary shares) of Dawn Properties shares were surrendered by shareholders

8,94% (219,728,754) of the shares however remain in the hands of Dawn Properties minority shareholders.

According to a prospectus released earlier the deal is expected to result in significant cost savings and improved liquidity to investors in both companies.

Equity Axis News.

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