Dawn Properties to delist?

Published: 21 June 2015
Dawn Properties (Dawn) might delist from the Zimbabwe Stock Exchange (ZSE) following an offer to acquire minority shares by major shareholder Brainworks Capital Management Limited (Brainworks).

Brainworks recently acquired a 61,65 percent controlling stake in Dawn after taking over a further 18,58 percent from the 43,07 percent it already held in the firm.

"We wish to advise shareholders that the mandatory offer to acquire the shares of all minority shareholders is being compiled in accordance with the ZSE listing requirements and will be announced to shareholders once completed and approved," said the private equity investment and financial advisory firm yesterday.

ZSE listing rules stipulate that any entity that acquires more than 35 percent of a listed company is required to buy out minority shareholders at the current trading price and subsequently delist or reduce shareholding to prescribed threshold.

Listing rules also require at least 30 percent of the company's issued share capital to be represented by a free float.

This comes as listed hotelier African Sun Limited recently disposed part of its 16,54 percent stake in Dawn for $1 million in a transaction effected on the ZSE on December 17 last year.

"The rest of the disposal is expected to be completed by March 30, 2015," the African Sun group said in its results for the year to September 30, 2014.

The hospitality group raised about $5,8 million from total sale of its 28,54 percent stake in Dawn, with the funds earmarked for "key capitalisation and debt reduction initiatives".

Meanwhile, Dawn's revenue for the six months to September 2014 slumped by four percent to $2,7 million from $2,8 million due to the operating environment which remained constrained as the liquidity crunch escalated.

The listed property firm also stated that the weakened performance was largely because of its property consultancy arm which was trading at 12 percent behind the corresponding period.

"Operating expenses decreased by eight percent due to cost cutting initiatives that were instituted," the company said.

As a result the operating profit for the period under review decreased by 11 percent to $779 108 compared to $874 791 in prior period.

The carrying amount for investment property remained unchanged at $85 million while cash and its equivalents for the group were up by 33 percent to $2 million compared to $1,6 million.

The rental income for Dawn's hotel portfolio at $1,38 million was five percent above the prior year
- dailynews
Tags: Dawn,

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