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Bianca Mlilo Business Reporter
Dawn Properties Limited has announced a plan to take over Barclays Bank of Zimbabwe’s 50 percent stake in Makasa Sun (Private) Limited for $14,6 million. In a statement yesterday, the property investment firm said the two parties are engaged in negotiations and would communicate with the shareholders once all processes have been finalised.

“Dawn Properties Limited hereby advises its shareholders that it has entered into a transaction to acquire the entire issued shares of Makasa Sun (Private) Limited from Barclays Bank of Zimbabwe and Barclays Pension Fund. Makasa owns a hotel property in Victoria Falls,” it said.

“The parties to the transaction are now in the process…a deposit amount of $7,5 million shall be received within 30 days of concluding on the conditions precedent from which selling costs shall be paid.”

The property firm said the balance would be paid in instalments over a period of up to 15 years.

“The balance to be paid by instalments shall incur interest charges, which will be reviewed annually in reference to an agreed interest rate benchmark. The proceeds of the sale shall be applied towards other banking assets,” it said.

The value of the net assets, which are the subject of the transaction was previously reported at $14,6 million as at June 30, 2015.

There will be no significant effect on the net assets per share of the bank except to the extent of returns that will be generated from the investment of the proceeds going forward.

It could not be ascertained why the bank was disposing of its stake in Makasa Sun Limited although indications are that it plans to exit Zimbabwe and Africa as a whole.