Itai Ndongwe
HARARE – African Sun Limited’s shareholders have given the nod for the disposal of the Caribbea Bay Resort business and its associated timeshare units, hotel assets, and goodwill for the value of US$5.65 million to the Public Services Pension Fund.
The disposal of the Caribbea Bay Resort is expected to be value accretive to existing shareholders as the proceeds from the sale will be reinvested in the refurbishment and enhancement of key strategic assets within African Sun’s portfolio, notably Elephant Hills Resort, Holiday Inn Hotels, and The Victoria Falls Hotel.
These properties are earmarked for refurbishment and enhancement programmes designed to maintain internationally competitive hospitality standards and improve guest experiences.
Proceeds from the transaction are also expected to materially strengthen African Sun’s liquidity position, enabling the funding of critical capital expenditure initiatives and supporting the recently approved general share buyback scheme. The enhanced financial flexibility is projected to reinforce the company’s balance sheet, underpin long-term sustainability, and allow for continued investment in core operations.
Chairman Lloyd Mhishi told FinX on the sidelines of the company’s EGM that the disposal “is meant to help African Sun focus on those assets which we think are high-performing and will give a return.
” I’m very grateful to the shareholders for agreeing with that. As soon as I leave this place, we will start focusing and making sure that we deal with all the issues that we’ve raised in our circular, the hotels that we have pinpointed which require refurbishments, upgrading and so on. This is the focus and I’m very much elated by this show of support from shareholders.”
The legal structure of the disposal and selling entities comprises four distinct asset components, outlined in three separate African Sun Group entities, pursuant to three distinct transactions. These include:
a) African Sun Zimbabwe Limited (a wholly owned subsidiary) is disposing of the Hotel Business, its associated timeshare units, hotel assets, and goodwill, together with the transfer of all Hotel Employees, for a consideration value of US$1 million.
b) Gold Coast Properties Limited (a wholly owned subsidiary of Silver Shore Properties Limited, in turn a wholly owned subsidiary of African Sun Limited) is disposing of the main Hotel Land and Buildings for a value of US$4.150 million.
c) African Sun Limited (the VFEX-listed parent company) is directly disposing of the Kariba Staff Housing properties for a consideration value of US$500,000.
The Caribbea Bay Resort is a 3-star property situated on the shores of Lake Kariba, featuring 84 rooms, including standard, king leisure, and suites. The resort also includes 11 timeshare units, with African Sun owning over 90% of the available weeks. On-site amenities include the Terrace Patio Restaurant, Jacana Bar, Round Bar, and conference facilities
