Timothy
Business Writer
African Sun has fulfilled all the conditions precedent relating to the acquisition of the entire issued ordinary shares of Dawn Properties Limited.
The group last year offered to buy 100 percent stake in Dawn Properties, through a share swap that entails issuance of 616 126 718 new African Sun ordinary shares to Dawn shareholders. The shares would be issued at a swap ratio of one African Sun ordinary share for every 3 988 075 946 Dawn ordinary shares.
At the close of the first offer period in January 2021, African Sun had managed to acquire 91,17 percent of the ordinary shares of Dawn Properties while the remaining 8,83 percent was acquired through legal means.
“The board wishes to notify its stakeholders and the investing public of the fulfillment of all the conditions precedent related to the acquisition of the entire issued shares of Dawn Properties Limited (“Dawn”), (“the Transaction”).
“As a result, all Dawn shareholders who have accepted the offer will now be granted African Sun Limited shares in accordance with the terms of the transaction,” Mr Vincent Musimbe, the company’s secretary said.
Dawn Properties has since de-listed from the Zimbabwe Stock Exchange (ZSE) in compliance with listing rules and regulations.
The company last year indicated that Dawn’s property portfolio had consistently performed below expectation with yields averaging below three percent.
The group said the opportunity to have exposure in African Sun will enhance the free cash flow yield for shareholders of the merged entity.
“Cost savings would be unlocked mainly from the rationalisation of structural efficiencies which will remove duplication, procurement efficiencies and constructive leveraging of capital permitting cheaper pricing of debt,” the company reported.
Dawn Properties was last year involved in a number of housing projects. These included the Marlborough Sunset Views, where it was servicing 65 stands under Phase 1A, measuring on average 2,000 square meters each, completed in July 2020.
The company’s other property development project, Elizabeth Windsor Gardens, involves construction of two bedroom and three bedroom homes.
Bongani Ndlovu