THE National Social Security Authority (NSSA) has tabled a plan to fire three Rainbow Tourism Group (RTG) board members, a week after it increased its shareholding in the country’s second largest hotel chain to 60 percent, The Financial Gazette established this week.
The three board members represent the interests of British investor, Nicholas van Hoogstraten, the second largest shareholder with about 33 percent stake.
NSSA, which held a 40 percent stake in RTG, increased its shareholding to 60 percent after buying a 19,95 percent shareholding previously held by First Mutual Holdings Limited (FMHL). NSSA is a 51 percent shareholder in FMHL.
The statutory pension fund is believed to have spent an estimated $3,5 million to buy the shares from FMHL.
In a letter to the RTG company secretary, Napoleon Mtukwa, seen by The Financial Gazette, NSSA demanded the convening of an extraordinary general meeting (EGM) on October 24 to pass a resolution for the dismissal of board members, Thandiwe Mlobane, Shingi Chibanguza and Ian Haruperi.
“We write to formally request that you cause the company to convene an extraordinary general meeting within 21 days of receipt of this requisition subject to compliance with Section 135 and 175 of the Companies Act,” said NSSA chairman, Robin Vela, in the letter to Mtukwa dated October 3, 2017.
“We advise that the object of the EGM shall be for members of the company to consider, and if deemed fit, pass with or without amendment the following resolutions: that Ms TT Mlobane be removed as a director of the company, Mr SM Chibanguza be removed as a director of the company, Mr IC Haruperi be removed as a director of the company. The National Social Security Authority has combined shareholding of the percentage required to pass an ordinary resolution. In view of this, we suggest that you request the… directors to resign immediately in order to avert a needless EGM,” said Vela, whose NSSA is embroiled in a battle for control at listed agro-concern, CFI Holdings.
“Should their respective letters be received by 4pm on Thursday, 5 October 2017, and the same communicated to the requisitioner, the requisitioner will stay the meeting. For the avoidance of doubt, in the event that no resignation letters are received on or before the said date, we request that you comply with our requisition to convene an EGM,” Vela added.
With 60 percent shareholding, NSSA holds the key to any board or shareholder resolutions.
During the half year to June 30, 2017, RTG incurred a $307 950 loss, which was an improvement from $2,9 million loss made during the same period the previous year.
Revenue in the half year period was up marginally from $11,4 million during the first half of 2016 to $11,6 million. The group’s Victoria Falls hotels recorded a 13 percent increase in revenue to $339 000 as a result of increased capacity of the resort town’s Airport.
Revenue from all of RTG’s hotels excluding the Harare properties grew 13 percent from $6,3 million to $7,1 million.