Brainworks increases stake in Dawn

HARARE - Private equity, investment and advisory firm, Brainworks Capital (Brainworks) says it has upped its stake in Dawn Properties Limited (Dawn) from 47,45 percent to 66,7 percent after the group made a mandatory offer to compulsorily buy out minorities.

This comes as Brainworks, which wanted to complete a total takeover of the Zimbabwe Stock Exchange-listed property concern, has been facing stiff resistance from minority shareholders who are keen to keep their shares in the property firm.

In its intention to buy out Dawn minority shareholders, Brainworks in November offered a market price of $0,02 per share.

A circular published yesterday showed that the equity firm together with its subsidiary Lengrah Investments (Private) Limited (Lengrah) now hold 1 640 566 862 shares in Dawn after some minority shareholders opted for the price money.

The total number of shares held by Dawn minorities, excluding Lengrah, before the offer were 925 483 890 and 108 877 644 were surrendered in terms of the offer.

Thus, the total number of shares now held by Brainworks and Lengrah after the offer stand at 1 640 565 826. Brainworks holds 365 716 551 through Lengrah in the property group.

The current share holding structure after the offer is now such that the minorities, excluding Lengrah, now hold 33,23 percent while Brainworks has a 66,77 stake.

“No decision has been made by the board in respect of any further corporate actions relating to Dawn,” the equity firm said.

In March this year, Brainworks increased its stake in Dawn to 47,45 percent, breaching the stock exchange’s 35 percent threshold required for a  public company and triggered the mandatory offer.

According to the group, the offer consideration constituted a premium of 5,6 percent to the 30-day volume weighted average price and 12,8 percent to the 60-day volume weighted average price of Dawn Properties shares as at July 1, 2015 and closed on December 4, 2015.

In a previous circular, Brainworks said it intended to keep Dawn listed on the local bourse.

Brainworks is an indigenous investment vehicle owned by various individuals and pension funds with interests in banking, asset management, consumer finance, life assurance and petroleum products.

The equity firm’s investment in Dawn Properties, a former subsidiary of hotel group African Sun Limited (ASL) gradually increased from 15 percent in June last year.

Dawn Properties owns and is renting out the bulk of its properties to ASL which includes Carribea Bay in Kariba, Elephant Hills in Victoria Falls, Hwange Safari Lodge and the Crowne Plaza hotel in Harare.


Comments (1)

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Lion and Elephant Motel. - 30 January 2017

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