African Sun sheds interests outside Zim
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.