- The Group said negotiations are underway
- The complementary business is not yet disclosed
- About the possible acquisition
Harare- Hospitality concern, Rainbow Tourism Group (RTG) is eyeing a strategic acquisition to expand its business and enhance shareholder value.
Zimbabwe is aiming to achieve a US$6 billion tourism industry this year, as international travel and tourism activities recovered following the COVID-19 pandemic. With the easing of restrictions on global travel, the tourism sector is expected to rebound strongly, presenting significant economic opportunities for the company.
In a cautionary statement, the Group said the acquisition involves a complementary business.
“The Board of Directors of Rainbow Tourism Group Limited wishes to advise all shareholders and the investing public that the Company is currently engaged in negotiations for a potential transaction involving the acquisition of a complementary business,” said the Group in a cautionary statement.
“If successfully concluded, the transaction may have a material effect on the price of the Company’s securities,” said the Group.
Although the details of the potential transaction remain undisclosed, RTG has advised shareholders and investors to exercise caution until the matter is finalised.
For the acquisition process, FBC Securities private limited is the financial intermediary providing advisory services and assist with the transaction.
By acquiring a complementary business, RTG could potentially broaden its range of services and products, which could attract new customers and increase revenue.
Additionally, an acquisition could provide cost savings through synergies and economies of scale, as the combined entity may be able to reduce duplication and streamline operations.
Thus, an acquisition could help RTG grow its business and boost shareholder value in the long term and strengthen its position in the tourism industry.
This move reflects RTG's commitment to pursuing growth opportunities and staying competitive in a fast-evolving market.
RTG is a hospitality company based in Zimbabwe that operates hotels, resorts, and lodges in the country. The company's portfolio includes luxury hotels, such as the Rainbow Towers Hotel & Conference Centre and the Victoria Falls Rainbow Hotel, as well as budget-friendly options like the A'Zambezi River Lodge.
RTG further offers travel and tour services, including transportation, safari tours, and adventure activities. The company's goal is to provide high-quality hospitality services that showcase Zimbabwe's natural beauty and cultural heritage, and to become a leading tourism company in the region.
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