ZIMBABWE’S largest tourism hospitality group African Sun Limited (ASL) said Lengrah Investments (Private) Limited’s offer to acquire shares of all minority shareholders will be done in accordance with the Zimbabwe Stock Exchange (ZSE) listing requirements.
The development follows Lengrah Investments (Private) Limited — trading as BCM hotels and Real Estate — notice to buy out minority shareholders in line with the ZSE rules.
Lengrah, a subsidiary of private equity firm Brainworks Capital, holds about 45% in the hospitality group.
ZSE rules stipulate that any shareholder who exceeds 35% has to offer to buy out minorities.
In a cautionary statement on Friday ASL said: “We wish to advise shareholders that the offer is being compiled in accordance with the Zimbabwe Stock Exchange-listing requirements and will be announced to shareholders once completed and approved.”
In November, ASL advised shareholders that it had received a notice from Lengrah that it now controlled 36,51% in the hospitality concern.
The deal resulted in the restructuring of ASL shareholding that saw chief executive officer Shingi Munyeza’s family trust, Nhaka Trust, getting 17,2% shareholding in Brainworks.
Last year, Brainworks bought ASL’s 12% stake in Dawn Properties.
Dawn Properties own most of ASL hotel premises. Brainworks’ shareholding in Dawn later increased to 16,54%.
This makes Brainworks Capital Management a major shareholder in both African Sun and Dawn.