African Sun ducks out of loss-making foreign operations

African Sun ducks out of loss-making foreign operations

HARARE, July 13 (The Source) – Hotel and Leisure group, African Sun Limited says is divesting from African Sun Limited PCC, the holding Company for its external business to focus on its Zimbabwean operations.

The hotel group has operations in countries that include South Africa, Ghana and Nigeria.

“African Sun Limited advises that in line with the current strategic thrust adopted by the Company in 2015 to focus solely on the Zimbabwean Hotel Business, the Company is in the process of disposing its interest in African Sun Limited PCC, the holding Company for all external entities,” the group in a statement on Wednesday.

AfSun said the external entities had accumulated comprehensive losses of $19,56 million and were in a net liability position of $3,94 million as at 31 December 2015.

The hospitality group in its FY2015 results indicated that it was going shut down its loss making hotels in and outside Zimbabwe and was undertaking major cost rationalisation measures to bring back existing operations to profitability.

Discontinued external operations include the Amber Accra Hotel in Ghana while locally, it closed the loss-making Beitbridge Express in January this year.

It also reduced its staff compliment to 1,179 from 1,490.