Private equity firm Brainworks ups African Sun stake to 55 percent

Private equity firm Brainworks ups African Sun stake to 55 percent

HARARE, May 15 (The Source) – Private equity investment and advisory firm, Brainworks Capital Management has increased its shareholding in African Sun to 55, 11 percent after closure of its mandatory offer to the hotelier’s minority shareholders.

Brainworks, through its investment vehicle Lengrah, in 2013 bought into the hotel group and increased its shareholding to 44 percent, becoming its major shareholder necessitating a mandatory offer to the minority shareholders.

This followed a transaction between Brainworks and former chief executive Shingi Munyeza’s family trust, Nhaka Trust, in which the latter ceded shares in African Sun in exchange for cash and 17.02 percent of Brainworks.

In statement on Friday, company secretary Edwin Shangwe who is also acting as chief executive following the departure of Munyeza said no decision had been made by the board in respect of any further corporate actions relating to African Sun limited.

Brainworks made an offer at a premium of three cents per share to the group’s minorities. African Sun traded at 2, 7 cents on Thursday.

Other African Sun shareholders include Riustrix Investments with 19.33 percent shareholding and Old Mutual Zimbabwe with 22.15 percent.