African Sun’s VFEX listing gets ZSE nod

Africa Sun board chair Emmanuel Fundira

THE Zimbabwe Stock Exchange (ZSE) has granted African Sun Limited authority to delist from the bourse and move to the foreign currency-denominated Victoria Falls Stock Exchange (VFEX).

In February, Afrisun’s board of directors passed a resolution to terminate the hospitality group’s ZSE listing and list its shares on the VFEX.

In a circular to shareholders yesterday ahead of an extraordinary general meeting (EGM) scheduled for March 28, 2023, the group said ZSE had granted the authority to delist African Sun’s shares from the ZSE subject to the passing by shareholders of African Sun of the resolution, by the requisite majority, at an EGM.

It was also subject to obtaining all necessary regulatory approvals as may be required, including issuing a letter of good standing by the ZSE to African Sun.

Recommending the transfer of shares, board chairperson Emmanuel Fundira said this feature was crucial for offshore investors looking to make long-term investments, as it also addressed a key concern regarding the current ZSE listing.

“Migration to the VFEX will enhance the ability of African Sun to raise US$ capital including foreign currency debt. The tourism industry has yet to fully recover from the devastating impact of the COVID-19 pandemic. Notwithstanding, international and domestic tourism recorded an encouraging resurgence in the 2022 fiscal year. In order to maintain this momentum and ensure the longevity of the industry, the board of directors has taken the following factors into consideration while evaluating strategies to drive growth and increase shareholder value in the year ahead,” he said.

Fundira added that African Sun, being a business in the tourism industry, was expected to generate US$ revenue, thus shareholders and investors expected the business to be valued in US$ with the ability to generate US$ dividends and proceeds on disposal of shares.

“Generally, listing on the VFEX will allow African Sun to gain access to a favourable exchange control regime that appeals to international investors. This regime is designed to make it easy for them to trade shares listed on the VFEX and repatriate both their capital and dividend earnings in USD. This feature is crucial for offshore investors who are looking to make long-term investments, as it addresses a key concern regarding the current ZSE listing,” he added.

In 2021, the company merged with Dawn Properties Limited to, among other strategic reasons, create a sound balance sheet that supports the company’s ability to raise capital to fund various hotel refurbishments and expansion projects.

African Sun’s list of hotels include Harare, Bulawayo and Mutare Holiday Inns, Troutbeck Resort, Victoria Falls Hotel, Hwange Safari Lodge, Monomotapa Hotel, Great Zimbabwe Hotel, Caribbea Bay Resort and Elephant Hills Hotel.

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