African Sun Limited is offering a buyback deal to shareholders, with plans to voluntarily delist from the Victoria Falls Stock Exchange. It could be a solid chance for investors to cash out.
Delisting and share buyback
Delisting and share buyback
- ASL is offering to buy back up to 40% of its shares at US$5.17 each.
- The buyback price is a 36% premium over the current trading price of US$3.79.
- The repurchase could cost around US$30.58 million, valuing the company at US$76.45 million.
- The offer opens on March 19, with a closing date of April 9, 2025.
- ASL wants to delist to gain operational flexibility, free from public market pressures.
- The delisting will reduce regulatory and compliance costs, allowing more focus on operations and growth.
- The company is no longer interested in raising capital from the market, so being listed offers few benefits.
- The delisting comes after ASL made a series of asset disposals, like Caribbea Bay Resort for US$5.65M.
- The company has sold other assets totaling US$22.2M to reinvest in higher-return ventures.
- The board believes the VFEX listing is no longer justified and supports the delisting decision.
- Investors could unlock true share value and avoid market constraints with the buyback.
- The offer simplifies exit for shareholders, with potential capital gains tax exemptions.
- ASL showed signs of recovery in 2025, with a small profit after tax of US$174,571 for H1 2025.
