African Sun still pursuing Dawn Properties acquisition
Harare,(New Ziana) – Hospitality concern, African Sun Limited said on Thursday an agreement is yet to be reached on its planned takeover of real estate real firm, Dawn Properties.
Dawn Properties is formerly a subsidiary of ASL and was de-merged from the group as investors sought to unlock full value from its properties.
Dawn Properties owns the majority of the hotels which African Sun is leasing from it such as the Monomotapa and Holiday Inn in Harare and the Elephant Hills in Victoria Falls.
Besides owning properties, the firm also runs a property development and consultancy unit.
African Sun and Dawn Properties, which are both listed on the Zimbabwe Stock Exchange, announced at the beginning of this month that they were in talks for a possible acquisition via a share swap.
In a cautionary statement to shareholders, ASL company secretary, Venon Musimbe said, “Further to the cautionary announcement dated 3 June 2020, shareholders are advised that discussions for the acquisition of 100 percent of the issued share capital of Dawn Properties Limited in exchange for African Sun Limited shares based on an agreed price are still in progress.”
Dawn Properties acting company secretary, Ndangariro Mutizwa in a separate cautionary to the firm’s shareholders confirmed the company was still evaluating the offer from African Sun.
“Further to the cautionary announcement dated 3 June 2020, the Directors of Dawn Properties Limited (“the Company or Dawn”) wish to advise all shareholders and the investing public that the Company is still evaluating an offer from African Sun Limited whereby ASL seeks to acquire a 100 percent of the issued share capital of Dawn.”
If the deal goes through, it would result in the possible de-listing of Dawn Properties.