AFRICAN Sun Limited (ASL) is seeking shareholder approval to dispose of its Caribbea Bay Resort in Kariba to the Public Service Pension Fund (PSPF) for US$5,65 million as it accelerates portfolio optimisation and capital reallocation toward higher-return hospitality assets.
Since 2024, the Victoria Falls Stock Exchange-listed hospitality group has been offloading what it considers non-core assets, including the Great Zimbabwe Hotel and Laclede Investments (Private) Limited for US$4,2 million.
ASL also sold the Monomotapa Hotel and its adjacent car park for US$18 million to the Public Service Commission (PSC) last year, a public sector body distinct from the PSPF, which manages pension assets for civil servants.
In a circular to shareholders, ASL said the proposed transaction would be concluded by way of an outright sale.
“At the meeting held on September 19,2025, the board of directors of African Sun considered and accepted, through a round robin resolution, an offer from the Public Service Pension Fund to purchase the Caribbea Bay business, its associated timeshare units, hotel assets and goodwill, as a going concern, together with the associated immovable hotel properties, inclusive of the Kariba staff houses and associated obligations for a total consideration of US$5 650000 plus any applicable VAT,” ASL said.
“The board identified this proposed transaction as a strategic opportunity in line with the company’s ongoing portfolio optimisation and capital reallocation strategy. The disposal is part of African Sun’s broader effort to divest from non-core assets and refocus investment on high-return properties.”
ASL revealed it would dispose of the Caribbea Bay Resort, including all associated operations as a going concern, including the hotel assets with associated immovable properties, inclusive of the Kariba staff houses and associated obligations.
“The transaction will be concluded by way of an outright sale, with proceeds payable in full into an escrow account designated by the company within 45 calendar days of the signature date (or such other date as expressly provided in the relevant sale and purchase agreements).
- Woodball spreads to schools
- Nakamba back from injury
- African Sun floats on ‘gain on bargain purchase’
- African Sun floats on ‘gain on bargain purchase’
Keep Reading
“Upon completion of the disposal, Caribbea Bay Resort will no longer form part of African Sun’s operational or asset portfolio.”
The Caribbea Bay Resort is an iconic property that features 84 rooms, including standard, king leisure rooms, and suites.
In addition, it includes 11 timeshare units situated on the property, of which ASL owns over 90% of the available weeks.
“Proceeds from the disposal will be used to refurbish and upgrade key assets such as Elephant Hills Resort, Holiday Inn Hotels and The Victoria Falls Hotel, thereby enhancing guest experience and hospitality standards,” ASL said.
“The Transaction will strengthen African Sun’s financial position by increasing liquidity and funding strategic capital improvements as well as the recently approved share buy back scheme.”
ASL said the proposed disposal supports the company’s shift to a smaller, high-quality hotel portfolio with enhanced focus, enabling greater operational focus, scalability, and profitability.
“In response to market conditions and the asset’s marginal performance, the disposal allows reinvestment into higher-return properties.”
The extraordinary general meeting where the sale of the proposed property will be considered is scheduled for March 4 next month.
ASL closed the 2025 third quarter with an 87% increase to US$19,9 million in cash and cash equivalents, driven by proceeds from non-core asset disposals and operational cash generation.
