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Senior Business Reporter
THE Reserve Bank of Zimbabwe (RBZ) has approved the proposed unbundling and liquidation of Arden Capital, the investment holding company of hospitality group, African Sun.
The approval is, however, subject to certain conditions that will see the group re-propose the transaction to shareholders with the new conditions prescribed by RBZ.
Arden Capital advised its shareholders on December 20, 2021 and January 17, 2022 that the conditions precedent to the proposed unbundling and voluntary liquidation had lapsed following delayed approval of the transaction by the apex bank.
“Shareholders are now advised that the company has received RBZ approval for the proposed transaction, subject to certain conditions imposed by the RBZ.
“The board is currently assessing the conditions and intends to re-propose the proposed transaction to shareholders in due course,” Arden said in an update to shareholders.
In June last year, the company said it had commenced a process of reviewing its prospects, financial health, strategy, and ability to continue to operate as a listed investment holding company.
As part of the transaction, the voluntary liquidation saw the cancellation and de-listing of Arden’s shares on the Johannesburg Stock Exchange (JSE).
As part of the transaction, Arden also sold its logistics company FML, which moves bulk fuel across the region, with the net proceeds used to pay off debts.
The sale was to an unrelated third party for a consideration of US$1 million (R15 315 700 and exchange rate of 15,3157, being the ZAR:USD at the date of the disposal.
Arden was initially established as a listed investment company through which shareholders could gain exposure to various investment sectors with a focus on Zimbabwe.
The group’s listing was aimed at achieving liquidity for shareholders by providing them with a tradeable instrument on an internationally recognised stock exchange and providing the company with a platform through which to raise future funding for the growth of its portfolio.
Online Reporter