BCM guns for African Sun major stake African Sun

african sunOliver Kazunga Senior Business Reporter
PRIVATE equity investment and advisory firm, Brainworks Capital Management (BCM) is inching closer to snapping up major shareholding in hotel group, African Sun through the acquisition of all the issued ordinary shares.The deal will result in BCM holding more than 51 percent of the issued share capital.

“African Sun announces that it has received written notice of a firm intention from Lengrah Investments trading as BCM Hotels and Real Estate, a wholly-owned subsidiary of Brainworks Capital Management . . . to acquire (subject to the applicable terms and conditions referred to in this firm intention announcement), all the issued ordinary shares in the capital of African  Sun, save for shares already owned by BCM Hotels and Real Estate,” the two firms said in a joint statement yesterday.

George Manyere is the managing director and founder of BMC, a firm that was incorporated on April 15, 2010.

The company was established as a special purpose vehicle by Brainworks Capital for its investments in the hotel and real estate sectors in Zimbabwe.

In November 2013, African Sun shareholders were advised that the company had received notice from BCM Hotels and Real Estate that it now controlled more than 35 percent of the issued share capital in the firm.

Prior to the notice, BCM Hotels and Real Estate acquired 32,82 percent shareholding in African Sun through a secondary transaction that was completed on November 6, 2013.

BCM Hotels and Real Estate further acquired 43,322,773 African Sun shares in the open market, representing an additional 5,21 percent of the issued share capital of African Sun.

BCM Hotels and Real Estate thereby breached the 35 percent mandatory offer threshold and subsequently notified management of African Sun of their intention to comply with the Zimbabwe Stock Exchange listing requirements.

“The mandatory offer is made at a price of $0,03 per share to the African Sun shareholders listed on the company’s register.  BCM Hotels and Real Estate will issue a combined circular in respect of the mandatory offer to shareholders of African Sun, setting out the terms of the mandatory offer. The circular is expected to be posted to African Sun shareholders on or about April 2, 2015.”

 

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