HomeNewsAfrica Sun ups stake in Dawn

Africa Sun ups stake in Dawn


The country’s largest hospitality group, African Sun Limited (ASL) has increased its shareholding on listed Dawn Properties (Dawn) to 28,54 % in a move aimed at protecting and enhancing shareholder value.

Early this month, over 220 million shares exchanged hands through two special bargains deal, one valued at $1,58 million involving 131 754 124 at 1,2 cents per share and the other valued at slightly over $1 million after 90 million shares. In a trading update to shareholders yesterday, the hospitality group said the transaction costs of
$3 710 442, 24 had been settled.

“The board wishes to advise shareholders that Africa Sun Limited has recently acquired 294 705 134 shares in Dawn Properties as part of our strategy to protect and enhance shareholder value. This acquisition represents 11,99% of the issued share capital of Dawn and brings the shareholding of the company to 28,54%. The consideration, including transaction costs,
$3 710 442, 24 has been settled in full,” the group said.

Markets sources said ASL was likely to push for board representation in the listed property group.
There has been an acrimonious relationship in recent months between Dawn and ASL shareholders.

Dawn recently issued a cautionary statement advising shareholders it was forging ahead with efforts to eject listed hospitality group ASL from its leased properties.

The property firm, through its subsidiaries Gold Coast Properties and Laclede Investments, has lease agreements with ASL for Hwange Safari Lodge, Holiday Inn Mutare, Carribea Bay Sun in Kariba, Elephant Hills Hotel in Victoria Falls, Crowne Plaza Monomotapa Hotel in Harare, Express Holiday Inn in Beitbridge and Troutbeck Hotel in Nyanga.

Currently, the hospitality group, which posted its first net profit since the economy was dollarised in 2009, is on a refurbishment exercise that would see the sprucing up of three city hotels — Crowne Plaza Monomotapa, Holiday Inn Harare and Holiday Inn Bulawayo — and three resort hotels in Victoria Falls.

Refurbishment of the city hotels is expected to be completed by the end of August.

African Sun is presently drawing down its $7 million facility from Afreximbank to sponsor the exercise.

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