- Category 1 Transaction: Asset disposal is substantial requiring shareholder approval
- Recently sold Great Zimbabwe Hotel, Beitbridge Hotels, for $6.9 million
- Strategic Streamlining: Aims to optimize portfolio, enhance financial flexibility, and improve operational efficiency
Harare- African Sun, Zimbabwe's largest hotel group, is gearing up for a significant disposal of assets following the recent sale of two underperforming hotels for $6.9 million. This strategic move aims to optimize its portfolio and bolster its financial position.
The Group resolved to sell the Great Zimbabwe Hotel on March 22, this year, while the agreement for the Beitbridge Express Hotel was executed on July 18, 2024. The agreement for the Great Zimbabwe Hotel followed on August 15, 2024, with the effective date for the transactions set for November 1, 2024.
In a circular, the company said, “Further to the cautionary announcement dated 29 August 2024, the Directors of Meikles Limited wish to advise shareholders that discussions on the disposal of certain of its assets are still in progress which, if successfully concluded, may have a material effect on the Company’s shares.”
The group’s expansive portfolio includes iconic hotels like Monomotapa, Elephant Hills, Caribbea Bay, Hwange Safari Lodge, Holiday Inn, and Troutbeck.
Africa Sun also co-owns The Victoria Falls Hotel with Meikles.
The transaction is a substantial one as it is categorized as a "Category 1" deal, requiring shareholder approval due to its significant size.
A Category 1 transaction typically involves assets up to 30% of the company's aggregate value.
The disposal of underperforming assets will enable Africa Sun to concentrate on its strongest properties, ultimately benefiting the company's bottom line
Africa Sun's proactive approach to portfolio optimization reflects the company's adaptability in Zimbabwe's evolving hospitality sector. By streamlining operations and focusing on high-performing properties, Africa Sun aims to enhance financial flexibility, improve operational efficiency, and maintain its position as a leading hospitality group.
Africa Sun is Zimbabwe's premier hospitality group, boasting an impressive portfolio of iconic hotels and resorts. With a rich history and commitment to excellence, Africa Sun continues to shape the country's tourism landscape.
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