Africa-Press – Zimbabwe. AFRICAN Sun Limited (ASL) has proposed a voluntary delisting from the Victoria Falls Stock Exchange (VFEX), offering to buy back up to 40% of its shares at US$5,17 each, a roughly 36% premium to its current trading price.
The offer is a premium one, as on Wednesday, ASL, a hospitality company, was trading at US$3,79 per share on the VFEX from its 14 786 476 shares in issue.
Consequently, at an offer price of US$5,17 per share, ASL’s total equity would be valued at approximately US$76,45 million, with the proposed repurchase of up to 40% of issued shares amounting to about US$30,58 million.
Compared to the current trading price of approximately US$3,7983, the offer represents a premium of roughly US$20,3 million to shareholders if fully accepted.
The offer will open on March 19 and close on April 9, following an extraordinary general meeting scheduled for March 18 to seek shareholder approval, with the proposed termination of ASL’s listing on the VFEX set for April 20.
“African Sun has proposed a voluntary delisting from the VFEX, with the delisting to be accompanied by a share repurchase offer of up to a maximum of 40% of the company’s issued ordinary shares.
“The offer provides an opportunity for shareholders to sell their ordinary shares at a consideration of US$5,17 per share,” ASL said in a circular to its shareholders.
“This move allows shareholders who prefer not to hold unlisted shares in African Sun to exit their investments prior to the delisting.
“Following the completion of the offer, African Sun will proceed with the delisting, thereby transitioning to an unlisted entity.
“Following the delisting of the company, African Sun plans to continue repurchasing its shares from shareholders on a flexible basis.”
ASL said the decision was based on several strategic factors.
“Delisting will provide greater operational flexibility, allowing African Sun to pursue its long-term strategic and turnaround priorities without the additional constraints and short-term pressures associated with maintaining a public listing.”
The hotelier said that with no wish to raise capital from the market, the ongoing benefits of remaining listed were limited.
“Low liquidity and thin trading in African Sun shares have historically restricted shareholders’ ability to realise value or exit their investments efficiently, making the proposed offer/share buyback a practical opportunity for shareholders to unlock value.”
In addition, ASL said delisting would materially reduce regulatory, reporting, and compliance costs, enabling management to redirect time and resources toward operations, refurbishing key assets, improving service delivery, and driving sustainable growth across the portfolio.
ASL first announced plans to delist nearly two weeks back to enhance operational flexibility and unlock long-term shareholder value.
The group has already been unlocking shareholder value through targeted disposals, seeking approval to sell Caribbea Bay Resort for US$5,65 million.
This is after previously offloading the Great Zimbabwe Hotel, Laclede Investments, and the Monomotapa Hotel portfolio for a combined US$22,2 million to reallocate capital into higher-return assets.
“The board believes that maintaining a listing on the VFEX is no longer justifiable given the circumstances outlined above,” ASL said.
“Consequently, they support the decision for African Sun to terminate its VFEX listing and to offer to purchase the Shares of shareholders who do not wish to retain their investment in a privately held, unlisted entity.
“The board recommends that shareholders approve the relevant resolutions, as detailed in the notice of the extraordinary general meeting included in this circular.”
ASL said benefits to the offer include the realisation of true share value, avoidance of market constraints, simplified exit mechanism, reinvestment opportunity, and a capital gains tax exemption, which may apply, subject to individual shareholder circumstances and prevailing tax authority provisions.
The offer comes after the company recorded losses in 2023 and 2024, though signs of a 2025 recovery were there with a half-year profit after tax of US$174 571 for the period ended June 30, 2025.
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