Equity firm ups stake in Dawn

Business Editor
A special bargain of 456,58 million shares in Dawn Properties saw Zimbabwe Stock Exchange turnover last Friday close at a rare $10,75 million.
The block deal executed by Lynton-Edwards Stockbrokers and Imara at 2 cents, a premium of just over 81 percent to the trading price was valued at $9,13 million.

The sale is part of Brainworks Capital Management’s consolidation of its stake in Dawn Properties as it now holds over 60 percent of the company.

The 456,58 million shares were from different sellers but mainly from Imara nominees and Stewart Cranswick.

This only leaves Brainworks and Old Mutual as the two major shareholders and paves way for the looming re-bundling with hotel group African Sun.

An offer to Dawn Properties minorities will soon be made in accordance with Chapter 9 of the Zimbabwe Stock Exchange listing requirements which compels shareholders to make a mandatory offer once their stake passes the 35 percent level.

Brainworks through Lengrah has been gradually increasing its stake in the counter after African Sun disposed of its 32 percent stake in the counter.
Subsequent trades were made, including the purchase of the Tanvest stake which was close to 10 percent.

The transaction comes after Brainworks successfully raised $35 million during following a rights issue last month.

The group said the proceeds will be used to strengthen the various company investments including Dawn and African Sun.

Brainworks has already made an offer of 3 cents to African Sun minorities.

In normal trades Dawn Properties gained 0,10 cents to settle at 1,10 cents, while African Sun moved up a further 0,08 cents to trade at 2,90 cents.

Elsewhere on the ZSE, stocks bucked a bearish trend to push up the Industrials Index higher to 156.51 as it added 1.20 points (or 0,77 percent) as volumes increased significantly.

Heavyweight counters made their presence felt, with beverages giant Delta recovered 1,46 cents to trade at 103,50 cents and retailer  OK Zimbabwe was 0,40 cents firmer at 11  cents.

On the downside, Seed Co lost 1,50 cents to trade at 100 cents and Astra dropped 0,40 cents to 4,10 cents.

Turnall shed 0,30 cents to a cent and Padenga eased by 0,20 cents to close at 9,80 cents. The value of trades stood at $10,7 million.

On a week-on-week basis, the industrial index was up 0.62 (or 0,40 percent). The mining index retreated by 0.61 points (or 1,75 percent) to close at 34.31 after Hwange was 0,50 cents lower at 3,50 cents.

Falgold and RioZim maintained previous trading levels at 0,40 cents and 7 cents, respectively. But Bindura traded in the black, inching up 0,25 cents to trade at 3 cents.

For the week just ended, the Mining Index added 1.64 points (or 5,02 percent) compared to the previous week.