via African Sun to delist? – DailyNews Live by John Kachembere 16 DECEMBER 2013
Hospitality concern African Sun Limited (ASL) may delist from the Zimbabwe Stock Exchange (ZSE) after private equity group Brainworks Capital (Brainworks) increased its shareholding beyond the bourse’s prescribed threshold.
Last month, Brainworks — through its subsidiary Lengrah Investments — increased its shareholding in ASL from 32 percent to 45 percent following a special bargain of 42,3 million shares.
However, according to ZSE’s listing rules, an entity that acquires more than 35 percent of a listed company is required to buy out minority shareholders at the current trading price and subsequently delist from the bourse or reduce shareholding to prescribed level.
Market analysts believe that Brainworks Capital through its anchor shareholder, African Development Corporation, intends to list either on the Frankfurt Stock Exchange or the Toronto Stock Exchange.
Shingi Munyeza, ASL’s chief executive and also a shareholder in Brainworks through his family investment vehicle Nhaka Trust, has said the private equity group targeted to increase its shareholding in the hotelier.
“We want to accumulate as many shares as possible. Our aim is to grow our value in African Sun,” he said upon Brainworks increasing its stake.
Last week, he said a mandatory offer to minority shareholders is currently going through the approval process with the regulatory authorities.