African Sun Completes Dawn Properties acquisition

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The stock market registered an increased and unusual volume of shares in the mid week session as Hotelier African Sun completed the acquisition of the entire issued shares of Dawn Properties. The trade was a fulfilment of African Sun’s acquisition of the entire issued share capital of Dawn, which was approved late last year by the latter’s shareholders.

In October 2020, Dawn Properties shareholders gave a nod at an EGM to a proposed offer by African Sun to acquire up to 100% of the issued share capital of Dawn by means of a share swap through the issuance of 616 126 718 new African Sun ordinary shares to Dawn shareholders at a swap ratio of one African Sun ordinary share for every 3,988075946 Dawn ordinary shares.

The implication of the move is that Dawn Properties becomes consolidated into African sun operations, an order which used to be in place the parties elected to split operations.

Arden Capital, formerly Brainworks, is the majority shareholder in Dawn with just under 52% shareholding. Dawn owns hotel properties that are being leased by African Sun. African Sun is also controlled by Arden Capital.

Dawn recently announced plans to terminate its listing on the Zimbabwe Stock Exchange (ZSE).

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

In 2020, Zimre Holdings Limited acquired a 97.6% shareholding in  ZPI with a subsequent delisting of ZPI as it no longer met the minimum free-float for a listed company defined in section 87(d) of the ZSE’s Listings Requirements

Powerspeed shareholders shareholders in the last quarter of 2020 approved a proposal to delist from the ZSE on the basis of high listing costs. Listed miner Falgold, applied for voluntary delisting from the local bourse in a cost cutting initiative as the firm is grappling with capitalization issues.

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