Source: ASB Hospitality buys another Zim hotel – herald
Sikhulekelani Moyo
Zimpapers Business Hub
LISTED financial services provider, First Capital Bank, has signed a share purchase agreement with a potential investor, ASB Hospitality LLC, for its shareholdings in hotel operator Makasa Sun (Pvt) Limited.
This would mark yet another strategic expansion into Zimbabwe’s tourism industry by United Arab Emirates-based ASB Hospitality, following its 2019 acquisition of the iconic The Meikles Hotel in Harare, which has since rebranded to Hyatt Regency Harare-The Meikles.
The Kingdom Hotel, one of the most spectacular hotels, located in the heart of the resort town of Victoria Falls, closed in early 2023 after a lease dispute between the owner and operator, Africa Sun Limited and is expected to re-open under a new brand once the acquisition is completed.
Makasa Sun (Pvt) Limited’s sole asset is Makasa Sun Hotel in Victoria Falls, formerly The Kingdom Hotel.
Victoria Falls Stock Exchange-listed First Capital Bank Limited currently holds a 50 percent stake in Makasa Sun (Pvt) Ltd.
ASB expansion comes as Zimbabwe’s tourism industry is in a strong recovery phase, experiencing significant growth in international arrivals and revenue, and has recently been recognised globally as a top tourism destination.
The tourism sector is benefiting from Government support, such as incentives and the creation of special economic zones, and is attracting investment despite global headwinds
In a statement, First Capital said it had entered into a binding agreement with ASB Hospitality, registered in the United Arab Emirates, for the sale of all issued ordinary shares and redeemable preference shares in Makasa Sun Pvt Ltd.
The bank said upon conclusion of the transaction, the purchaser will become the ultimate beneficiary, acquiring 100 percent of the issued share capital of Makasa Sun.
“Further to the cautionary statements issued on September 17, 2025, October 8, 2025 and October 29, 2025, the directors of First Capital Bank wish to advise all shareholders and the investing public that the company and its co-shareholder First Capital Bank Staff Pension Fund (the fund) (hereinafter collectively referred to as “the existing shareholders” or “the sellers” as the context requires) have signed a share purchase agreement with a potential investor, ASB Hospitality LLC, regarding the proposed disposal of their respective shareholdings in Makasa Sun (Private) Limited (‘‘the sale shares”), in its capacity as the target company,” said company secretary Ms Sarudzai Binha in a statement.
“The total consideration for the sale of all issued shares in Makasa Sun is US$30 million, payable as follows: a deposit of US$3 million has been settled and placed in Escrow pending completion; and the balance of US$27 million is to be paid in full on the completion date against the transfer of the sale shares.
“The net assets subject to the transaction comprise all ordinary and preference shares representing 100 percent of Makasa Sun’s issued share capital, including the hotel, jointly held by First Capital Bank Limited and First Capital Bank Pension Fund.”
Ms Binha said as of October 31, 2024, the consolidated net asset value attributable to Makasa Sun amounted to US$27,98 million.
“First Capital Bank Limited holds a 50 percent interest in Makasa Sun and does not fully consolidate its financials. The transaction will result in the full disposal of Makasa Sun from the bank’s consolidated group,” she added.
She said the disposal of Makasa Sun would replace its recorded assets with cash proceeds of an equivalent amount, which means the bank’s net asset value and net tangible assets per share are not expected to materially change, except for adjustments related to transaction costs, taxes, and subsequent application of proceeds.
“As Makasa Sun has been classified as a dormant entity, the transaction is not expected to have a significant pro forma effect on the Bank’s historical earnings or headline earnings per share,” said Ms Binha.
She added that the rationale for the transaction is to unlock shareholder value through divestment of the non-core hospitality asset, enabling the bank to focus on core banking and financial services activities.
“The sale to ASB Hospitality LLC, a renowned international hotel owner, which is supported by global hotel operator brands, is anticipated to enhance the strategic positioning of Makasa Sun Hotel and support further investment in the Zimbabwean hospitality sector,” added Ms Binha.
“Proceeds from the sale will be applied by the sellers as follows: settlement of capital gains tax obligations to ZIMRA; distribution of net proceeds to the bank and the fund in accordance with their respective shareholdings; reinvestment in core business activities and pension fund obligations; and no securities are being received as consideration for the disposal; the transaction is for cash only.”
As of September 17, 2025, being the date of issuance of the first cautionary statement, Ms Binha said the market capitalisation of the bank was US$134 million.
She said the bank’s 50 percent equity interest in Makasa Sun Pvt Ltd is valued at US$15 million, saying that consequently the planned disposal represented 11,19 percent of the company’s market capitalisation.
In terms of the VFEX listings requirements, such a transaction qualifies as a category three transaction and the company will comply with all applicable disclosure requirements,” said Ms Binha.
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