Liquidation of Afrisun’s parent company gets green light from RBZ

the herald

Senior Business Journalist

The Reserve Bank of Zimbabwe (RBZ) has approved the proposed break-up and liquidation of Arden Capital, the investment holding company of hotel group African Sun.

The approval is however subject to certain conditions which will see the group re-offer the transaction to shareholders with the new conditions prescribed by RBZ.

Arden Capital informed its shareholders on December 20, 2021 and January 17, 2022 that the conditions precedent to the planned voluntary unbundling and liquidation had lapsed following the late 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 evaluating the terms and intends to re-offer the proposed transaction to shareholders in due course,” Arden said in an update to shareholders.

In June last year, the company said it had begun a process of reviewing its outlook, financial health, strategy and ability to continue operating as an investment holding company. listed.

As part of the transaction, the voluntary liquidation saw the cancellation and delisting of Arden’s shares from the Johannesburg Stock Exchange (JSE).

As part of the transaction, Arden also sold its logistics company FML, which transports bulk fuel to the region, with the net proceeds used to pay down debts.

The sale was made to an unrelated third party for consideration of US$1 million (R15,315,700 and exchange rate of 15,3157, being ZAR:USD at the date of sale.

Arden was initially established as a listed investment company through which shareholders could gain exposure to various investment sectors, with a focus on Zimbabwe.

Listing the group was intended to provide liquidity to shareholders by providing them with a tradable instrument on an internationally recognized stock exchange and providing the company with a platform through which to raise future funds for the growth of its portfolio.

About Meredith Campagna

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