Zimbabwe Stock Exchange (ZSE)-listed hospitality group African Sun Limited (ASL), is seeking shareholder approval to replace four members of the Dawn Properties board at an extra-ordinary general meeting on August 28, as the acrimony between the two entities draws to a close.
Relations between the two companies had in recent months soured following a dispute over lease agreements.
Dawn Properties approached the High Court, under case number HC3014/12, seeking cancellation of eight property leases to ASL.
ASL chief executive officer Shingi Munyeza was, however, adamant the two companies entered into a 50-year lease agreement saying only 10 years had lapsed since the signing of the agreement.
The property company, through its subsidiaries Gold Coast Properties and Laclede Investments, has lease agreements for Hwange Safari Lodge in Hwange, 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, all run by ASL.
In a notice to shareholders, Dawn Properties company secretary Nora Tome said the proposed meeting was at the instigation of majority shareholder, ASL.
Said Tome: “Following a requisition made by African Sun Limited in terms of Section 126 of the Companies Act Chapter 24:03, for the convening of an extraordinary general meeting on requisition, for the purpose of removing all but two directors of the company and replacing them with nominees . . .”
ASL is seeking to oust current
board chairperson Tendai Chimuriwo, Mike Manyika, Dave Cooper and Dirk Godwasser.
In their place, the Munyeza-led hospitality concern is proposing George Manyere, Ambrose Matika, Felix Muzondiwa and Bekithemba Nkomo.
Early this year, two special bargains of over 220 million shares exchanged hands on the ZSE representing close to 10% of Dawn Properties’ issued share capital, a development analysts at the time warned would result in board changes.
In May, Munyeza said a committee to deal with the legal wrangles with Dawn had been set up.
“The legal route cannot solve value creation for Dawn. What we are doing is to restore shareholder value to assets, and the primary reason is for creation of value,” he told shareholders then.