African Sun Limited (Zimbabwe) exits the Kingdom at Victoria Falls Hotel

By Published On: July 6th, 2022Categories: Corporate announcement

The Board of Directors (“the Board”) of African Sun Limited (“African Sun” or “the Company”) wishes to announce that the Company will be exiting the Kingdom at Victoria Falls Hotel (“the Hotel”). The Hotel has been under the African Sun stable since 1966 and was being leased from Makasa Sun (Private) Limited (“the Landlord”).

The exit is coming after African Sun had been successful in the 2021 tender for the Hotel’s lease.

However, despite this success, a mutually agreeable lease tenure could not be reached, with the Landlord only willing to offer a lease of two years against the Group’s ask of a tenure of at least ten years in its tender. The ten-year lease tenure was and is still considered as being the minimum the Company would need to recoup and realise a return from its envisaged investment in the Hotel.
The decision to exit the Hotel has not been an easy one for the Board, but was necessary and unavoidable to protect shareholder value in the circumstances.

Meanwhile, the Company is attending to the exit plan and a further announcement will be made in this regard.

By order of the Board,

V.T. Musimbe
Company Secretary

The contents of the post above were obtained from third parties, which We, AfricanFinancials, believe to be reliable. However, We do not guarantee their accuracy and the above information may be in condensed form. The reader is encouraged to refer to the original source of the information, which, in most cases, is in PDF format and on the originating company's letterhead. While We endeavour to replicate the original content accurately, We cannot guarantee the absence of errors in the above article and We disclaim any liability regarding reliance on information provided in this article.

African Sun Limited (ASUN.zw)

Share price: 3,733.04 ZWL cents ▲ (345.71 | 10.21% – 07/02/23)

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