‘Indigenisation stalls CB Richards Ellis disposal’

an annual general meeting yesterday: “Progress has been slower than expected because the transaction involves a foreign investor and, therefore, there are additional compliance issues that need to be attended to,” said Mr Manyika.
“We are hopeful that we will conclude the transaction before the end of the financial year.”
The disposal of CBRE is part of the group’s strategy to concentrate on its core business.
Dawn has already offloaded its horticulture business. CBRE is 100 percent owned by Dawn, and is listed on the Zimbabwe Stock Exchange with an estimated value of US$1,5 million.
Mr Manyika said focus was on unlocking value in the hotel portfolio. Three options were being considered, among them the disposal of certain assets, leasing of certain assets and possible mergers. He could not say how much the group was earmarking from assets disposals. There is a mutual agreement between Dawn and African Sun Limited, a 28,5 percent shareholder in the property firm, on exploring these options.
But the market is unfavourable at the moment and it does not look like anything will happen anytime soon.
Dawn is yet to secure a permit from the City of Harare for the development of 200 hectares in New Marlborough. In a trading update, management said the company recorded a 10 percent rise in revenues in the six months to September 30 this year.
Expenses were down 10 percent in the same period due to aggressive cost management.
Old Mutual called for a poll on directors since it had an issue with Mr Vernon Lapham being a director on both the Dawn and African Sun boards.
A vote was conducted with 28 shareholders participating. Mr Lapham was removed from the board with 57,8 percent against his re-election. About 97 percent voted in favour for Mr Tendai Chimuriwo, Mr Themba Ndebele (96,85 percent), Mr Phibeon Gwatidzo (96,85 percent), Mr George Manyere (97,5 percent), and Mr Dirk Goldwasser (96,6 percent).
ASL will have to replace Mr Lapham.