African Sun to delist?

HARARE - Hospitality concern African Sun Limited (ASL) may delist from the Zimbabwe Stock Exchange (ZSE) after private equity group Brainworks Capital (Brainworks) increased its shareholding beyond the bourse’s prescribed threshold.

Last month, Brainworks — through its subsidiary Lengrah Investments — increased its shareholding in ASL from 32 percent to 45 percent following a special bargain of 42,3 million shares.

However, according to ZSE’s listing rules, an entity that acquires more than 35 percent of a listed company is required to buy out minority shareholders at the current trading price and subsequently delist from the bourse or reduce shareholding to prescribed level.

Market analysts believe that Brainworks Capital through its anchor shareholder, African Development Corporation, intends to list either on the Frankfurt Stock Exchange or the Toronto Stock Exchange.

Shingi Munyeza, ASL’s chief executive and also a shareholder in Brainworks through his family investment vehicle Nhaka Trust, has said the private equity group targeted to increase its shareholding in the hotelier.

“We want to accumulate as many shares as possible. Our aim is to grow our value in African Sun,” he said upon Brainworks increasing its stake.

Last week, he said a mandatory offer to minority shareholders is currently going through the approval process with the regulatory authorities.

Comments (2)

This makes a very interesting read. There were recent reports that this entity was also pursuing a rights issue in order to retire very expensive short term debt. How can the two co-exist; a rights issue as well as a delisting from the ZSE?

The Watchman - 16 December 2013

A rights issue is an offer to existing shareholders on prorata basis based on heir current holding. The issue of whether a company is listed does not impede the undertaking of rights issues

Analyst - 18 December 2013

Post a comment

Readers are kindly requested to refrain from using abusive, vulgar, racist, tribalistic, sexist, discriminatory and hurtful language when posting their comments on the Daily News website.
Those who transgress this civilised etiquette will be barred from contributing to our online discussions.
- Editor

Your email address will not be shared.