Audrey Galawu- Assistant Editor
African Sun Limited is seeking shareholder approval for a strategic overhaul of its asset portfolio and share structure, according to a circular released on August 1, 2025.
The proposed actions include the disposal of the Monomotapa Hotel business, a share consolidation, and an amendment to the company’s Memorandum of Association.
The circular states that African Sun intends to sell the Monomotapa Hotel and its adjacent carpark to the Public Services Commission for US$18 million plus applicable VAT. “Proceeds from the sale will fund refurbishment of other key assets, including Elephant Hills Resort, Holiday Inn Hotels, and The Victoria Falls Hotel,” the circular notes.
The move is expected to strengthen the company’s financial position and enable strategic investment in its remaining properties.
In addition, the company plans a share consolidation, combining every 100 existing ordinary shares of US$0.01 each into one new ordinary share of US$1 each.
According to the circular, this measure “aims to reduce administrative costs and improve share competitiveness.” While shareholders’ overall value will not change, fractional entitlements resulting from the consolidation will be paid out in cash.
African Sun also intends to amend its Memorandum of Association to reflect changes in authorised share capital following the consolidation.
The circular emphasises that shareholders will maintain the same percentage ownership in the company after the consolidation, subject to minor adjustments for fractional shares.
The Board of Directors recommends that shareholders vote in favour of all resolutions, stating that the proposed transactions are “in the best interests of the company and its shareholders.”
Shareholders will consider the proposals at an Extraordinary General Meeting scheduled virtually for Thursday, 21 August 2025, at 10:00 hours, with a record date of 18 August 2025 and proxy deadline of 19 August 2025.
The circular also notes potential risks, including market conditions and the need for regulatory approvals from the Competition and Tariff Commission.
Over the past 12 months, African Sun’s indicative share trading liquidity was US$346.56K, averaging US$28.88K per month.
Investors are encouraged to review the full circular before making decisions.
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