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Van Hoogstraten mum on RTG

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Rainbow Tourism Group (RTG)’s single largest investor, business tycoon Nicholas van Hoogstraten has pledged to remain silent on issues surrounding the hospitality group’s operations to allow for internal processes to take place. Van Hoogstraten holds a 36, 5% stake in the hospitality group that requires 75% approval from shareholders to embark on a $15 million […]

Rainbow Tourism Group (RTG)’s single largest investor, business tycoon Nicholas van Hoogstraten has pledged to remain silent on issues surrounding the hospitality group’s operations to allow for internal processes to take place.

Van Hoogstraten holds a 36, 5% stake in the hospitality group that requires 75% approval from shareholders to embark on a $15 million recapitalisation exercise.

RTG shareholders have disagreed on how the company should be recapitalised with property mogul van Hoogstraten insisting the current board should be dissolved first as it had allegedly run down one of the country’s largest hospitality group by market capitalisation.

RTG wants to raise the $15 million through a $10 million sale and lease of Rainbow Bulawayo Hotel and $5 million rights issue to retire an expensive short-term debt, complete hotel upgrades and re-align operating structures.

“I am unable to make any present comments on the current negotiations with the National Social Security Authority (NSSA) over the various RTG issues as I gave my word to the permanent secretary at the Ministry of Tourism (Sylvester Maunganidze) that I would say nothing until all issues had been resolved,” said van Hoogstraten in an emailed response.

“Should all issues not be resolved in a satisfactory manner, I will have plenty to say”.

Last month, NSSA asked mobile phone operator Econet’s appointed directors in RTG to remain on the board until end of this month, as shareholders sought to find a common position.

An advisory firm has since been appointed to try and bring the shareholders together and ensure the group is recapitalised.

Efforts by van Hoogstraten to get his proxies on the board also failed with the last attempt being in June last year.

His nominees — Shingirayi Chibanguza, Alexander Hamilton, Maximilian Hamilton and Ian Haruperi — could not garner enough support from shareholders to sit on the RTG board at the last annual general meeting.

The businessman then declared he would not support any capital-raising initiative until RTG CEO Chipo Mtasa and the board leave.