First Capital Bank, along with its staff pension fund, has agreed to sell its complete ownership in Makasa Sun to ASB Hospitality LLC for a total of 30 million dollars. The transaction involves all ordinary and preference shares in the hotel company, whose primary asset is the Kingdom Hotel in Victoria Falls. Upon meeting necessary conditions, ASB Hospitality will assume full beneficial ownership of the property.
The bank stated that this divestment is a strategic move to unlock shareholder value, allowing it to concentrate on its core banking operations. It noted that the Kingdom Hotel has been classified as a dormant entity for years, meaning the sale will not significantly impact its earnings. A three-million-dollar deposit has already been placed in escrow, with the remaining 27 million dollars payable upon completion.
The sale is pending multiple regulatory approvals, including from the Reserve Bank of Zimbabwe’s Exchange Control Department and the COMESA Competition Commission. Company secretary Sarudzai Binha advised shareholders to continue exercising caution when trading the bank’s securities until all approvals are finalized.
The bank stated that this divestment is a strategic move to unlock shareholder value, allowing it to concentrate on its core banking operations. It noted that the Kingdom Hotel has been classified as a dormant entity for years, meaning the sale will not significantly impact its earnings. A three-million-dollar deposit has already been placed in escrow, with the remaining 27 million dollars payable upon completion.
The sale is pending multiple regulatory approvals, including from the Reserve Bank of Zimbabwe’s Exchange Control Department and the COMESA Competition Commission. Company secretary Sarudzai Binha advised shareholders to continue exercising caution when trading the bank’s securities until all approvals are finalized.
