African Sun sheds in­ter­ests out­side Zim

Chronicle (Zimbabwe) - - Business - Oliver Kazunga Se­nior Busi­ness Re­porter

HOSPI­TAL­ITY group African Sun is still in the process of dis­pos­ing of its interest in all ex­ter­nal en­ti­ties af­ter they posted com­pre­hen­sive losses amount­ing to $19,56 mil­lion for the 15 months pe­riod ended De­cem­ber 31, 2015.

In April, African Sun re­ported that it had shut down its loss mak­ing ho­tels in and out­side Zim­babwe as part of a cost ra­tio­nal­i­sa­tion pro­gramme to bring back ex­ist­ing op­er­a­tions to prof­itabil­ity.

In a no­tice to share­hold­ers yes­ter­day, the hospi­tal­ity group said:

“In line with the cur­rent strate­gic thrust adopted by African Sun Limited in 2015 to fo­cus solely on the Zim­bab­wean ho­tel busi­ness, please be ad­vised that the com­pany is still in the process of dis­pos­ing its interest in African Sun Limited PCC, the hold­ing com­pany for all ex­ter­nal en­ti­ties.

“The ex­ter­nal en­ti­ties had ac­cu­mu­lated com­pre­hen­sive losses of $19,56 mil­lion and were in a net li­a­bil­ity po­si­tion of $3,94 mil­lion as at De­cem­ber 3, 2015.”

Share­hold­ers, it said were ac­cord­ingly ad­vised to con­tinue ex­er­cis­ing cau­tion when deal­ing in the com­pany’s se­cu­ri­ties un­til a fur­ther an­nounce­ment has been made.

Am­ber Ac­cra Ho­tel in Ghana and the lo­cal oper­a­tion, Beit­bridge Ex­press were closed af­ter post­ing a con­sol­i­dated loss amount­ing to $2,62 mil­lion dur­ing the pe­riod un­der re­view. Apart from these two ho­tels, the hospi­tal­ity group has said all its for­eign op­er­a­tions in coun­tries that in­clude Nige­ria, South Africa and Mau­ri­tius had also been closed.

The move was ex­pected to stop cash drain from the prof­itable Zim­babwe op­er­a­tions.

The hospi­tal­ity con­cern has also im­ple­mented a staff ra­tio­nal­i­sa­tion pro­gramme that has re­duced its work­force from 1,490 to 1,179.

African Sun owns en­ti­ties that in­clude Hol­i­day Inn Bu­l­awayo, Hol­i­day Inn Harare, Ele­phant Hills in Vic­to­ria Falls and Am­ber Ho­tel in Mutare.

In Oc­to­ber last year, the hospi­tal­ity con­cern signed an agree­ment with the Legacy Group of ho­tels to man­age five of its ho­tels-Ele­phant Hills, Trout­beck Inn, Hwange Sa­fari Lodge, the King­dom and Monomo­tapa ho­tels.—@okazunga.

Newspapers in English

Newspapers from Zimbabwe

© PressReader. All rights reserved.