Afrisun in $1m Dawn stake deal

HARARE - Listed hotelier African Sun Limited (Afrisun) has disposed part of its 16,54 percent stake in Dawn Properties (Dawn) for $1 million, Business Live has established.

The transaction was effected on the Zimbabwe Stock Exchange (ZSE) on December 17 last year.

“The rest of the disposal is expected to be completed by March 30, 2015,” the Afrisun group said in its results for the year to September 30, 2014.

The group expects to raise about $5,8 million from total sale of the stake, with the funds earmarked for “key capitalisation and debt reduction initiatives”.

It also expects to dispose of its fixed property to raise about $4 million, which will be used to repay part of its short-term loans and negotiations indicate that the transaction will go through before September 30, 2015.

Afrisun shareholders approved the disposal of the hotelier’s stake in the ZSE-listed Dawn in March last year.

Meanwhile, George Manyere has been appointed to Afrisun’s board with effect from November 24 last year. Manyere represents private equity investment and advisory firm, Brainworks Capital, whose subsidiary Lengrah Investments (lengrah) is currently the major shareholder in Afrisun.

While Lengrah was set to acquire the Afrisun’s Dawn stake, the group’s chief executive Shingi Munyeza and Manyere were both unavailable to comment on the buyers involved in the transaction.

Meanwhile, Afrisun recorded a $2,29 million loss in the year under review, down 74 percent from a restated loss of $8,83 million incurred prior comparative period. Revenue went up 13 percent from $55,5 million to $56,7 million, with the group attributing the performance to contributions by African Sun Amber Hotel Accra, which contributed 3,8 percent of the group’s total revenue.

Gross profit remained flat compared to prior year as cost of sales grew by four percent, with the addition of the Ghana hotel which was opened last in the financial year under review.

Operating costs slumped by 4,7 percent resulting in a $1,8 million saving compared to prior year.

The directors also approved the disposal of staff housing on a sale and lease back basis, as it made efforts to reduce borrowings.

Occupancy levels were unchanged at 48 percent, as an eight percent increase in rooms capacity was offset by an increase in actual rooms sold.

Rooms’ capacity increased following the opening of the Ghana hotel and release of local refurbished rooms.

Comments (3)

shingi has destroyed afrisun, now they make losses every year and have sold the buildings their hotels are housed in probably to follow the ok zimbabwe route but ok is a retailer

Chihota - 31 January 2015

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