Dawn EGM off

“Shareholders are advised that the EGM scheduled to take place on August 28 2012 has been cancelled. The cancellation follows the withdrawal of the requisition by African Sun Limited.
An agreement was entered into between African Sun Limited and the board of directors of Dawn,” a statement said.
In terms of the agreement, African Sun’s nominees, Messrs Vernon, Wright Lapham and Mr George Manyere were appointed to the Dawn board of directors with effect from August 6, 2012.
The Dawn board of directors is now comprised of Mr Tendai Chimuriwo, as the chairman, Mr Dave Cooper (alternate Mr Dirk Goldwasser), Mr Phibion Gwatidzo and Mr Vernon W. Lapham.
At the AGM African Sun sought to remove Mr Chimuriwo, Mr Cooper and Mr Mike Manyika from the Dawn board. The trio were thought to be behind a spirited campaign to have African Sun evicted from eight of Dawn’s properties.
African Sun had advised Dawn Properties it should withdraw the EGM upon appointment of the former’s representatives to the board.
The hospitality giant mounted a successful corporate coup and avoided eviction, which Dawn attempted following a dispute over rentals.
Dawn, now majority owned by African Sun, at 28,54 percent, leases most of the hotel properties from which the latter operates.
African Sun quietly shored up its shareholding in Dawn, from about 15 percent, to gain more influence in the company.
Dawn wanted to evict African Sun from eight properties, namely Hwange Safari Lodge, Amber Mutare, Carribea Bay in Kariba, Elephant Hills in Victoria Falls, Crowne Plaza Monomotapa in Harare, Beitbridge Express Hotel, Troutbeck in Nyanga and Holiday Inn Mutare.
The firm claimed the hospitality giant had frequently breached its lease agreement.
African Sun, however, denied ever violating terms of its 50-year lease agreement with Dawn.
The feud apparently started after African Sun attempted to pledge title deeds for the Crowne Plaza Hotel to the Industrial Development Corporation of South Africa as collateral for a US$10 million loan.