Brainworks moves into ASL Dr Munyeza
Dr Munyeza

Dr Munyeza

Martin Kadzere Senior Business Reporter
BRAINWORKS Capital Management, a private equity investment and advisory firm, has acquired a 32 percent shareholding in African Sun Limited through three vehicles that were previously controlled by ASL chief executive Dr Shingi Munyeza through his family trust, Nhaka Trust.
In return Nhaka got 17,02 percent shareholding in Brainworks Capital. Brainworks is now a significant shareholder in both African Sun and Dawn Properties.

African Sun owns 16 percent in Dawn Properties. The group recently sold its 12 percent stake in Dawn to Lengrah Investment, a subsidiary of Brainworks.

Nhaka Trust becomes a shareholder in Brainworks alongside African Development Corporation, Red Rock Capital and local pension funds who are already shareholders.

Analysts say a diversified Brainworks investment portfolio of financial services, energy, micro-finance and real estate investments could have been what attracted Nhaka Trust.

“It is hoped that through this structure, African Sun can tap into international financial markets,” the hospitality group said in a statement yesterday.

“The cross shareholding that now exists means that Dawn and ASL have a mutual shareholder allowing ASL to retain reasonable influence in the Dawn structures as a result of the shareholding structures and avoid unnecessary conflicts of the past.

“The association with ADC is (also) hoped to improve African Sun’s growth prospects through capital raising initiatives and referrals. African Sun hopes to leverage on its shareholder base that now includes the likes of ADC and Brainworks and Old Mutual as the some of the high profile shareholders of the hospitality company.”

Brainworks, through its investment portfolio companies, offers banking consumer finance products. Under its energy portfolio, Brainworks is active in petroleum products logistics and bulk trading markets, while in tourism and real estate portfolio, it is active in the hotel and real estate business. This means the acquisition of shareholding of ASL and Dawn will consolidate Brainworks’ local tourism portfolio.

Brainworks is also involved in gold mining in Zimbabwe and is currently undertaking exploration.
As at June 30 this year, Brainworks had total assets of approximately US$35,6 million, of which US$3,8 million was cash, while its total invested capital or equity was US$26,7 million.

Among Brainworks key shareholders – Nhaka Trust – African Development Corporation are 17 local pension funds. ADC has been instrumental in the development of Brainworks Capital, particularly in tapping international capital markets for growth of Zimbabwe businesses and the Zimbabwe economy at large.

To date ADC has assisted Brainworks Capital in securing approximately US$18 million from its own cash resources and other international investors since 2009. ADC has also been instrumental in the further development of Zimbabwe’s banking industry through its landmark US$50 million investment in BancABC in July 2012.

ADC is a German listed, emerging pan-African banking group. ADC has a strong footprint in Southern Africa via BancABC, a regional commercial banking platform operating in Botswana, Mozambique, Tanzania, Zambia and Zimbabwe as well as in West Africa via Union Bank of Nigeria.

Parallel to its banking operations, ADC has a private equity portfolio active in growth markets across sub-Saharan Africa. ADC’s activities in growth markets align to ASL’s regional activities.

It is expected that ADC will play a key role in bringing in new hotel developments through African Sun’s linkages.

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