Brainworks beefs up Dawn stake

08 Dec, 2014 - 00:12 0 Views
Brainworks beefs up Dawn stake Crowne Plaza Monomotapa was at the centre of a dispute between African Sun and Dawn Properties in 2010

The Herald

Crowne Plaza Monomotapa was at the centre of a dispute between African Sun and Dawn Properties in 2010

Crowne Plaza Monomotapa was at the centre of a dispute between African Sun and Dawn Properties in 2010

Happiness Zengeni Business Editor
Brainworks Capital has consolidated its position in Dawn Properties and is one step closer to getting alignment with African Sun following the purchase of additional shares during ZSE trades on Friday morning.

This comes after a total 284 272 687 Dawn shares traded at 2 cents last Friday. The shares were sold mainly by Tanvest.

The deal was worth $5,68 million. The shares were at a premium of 133 percent from the last trading price of 0,9 cents.

The deal comes after The Herald Business first hinted on the possible rebundling of African Sun and Dawn Properties in November last year.

African Sun unbundled Dawn in an effort to unlock value in its properties but wrangles between the two started in 2010 when the hotel tried to register a $12 million bond over Crowne Plaza Monomotapa without board approval.

Friday’s deal takes Brainworks direct shareholding in the group to 26,5 percent. The group is also the major shareholder in African Sun which holds 16,5 percent in the property group.

The transaction is an indication of confidence in the stock market, the property sector and the economy, which have otherwise been depressed due to the low liquidity levels and bearish sentiments over its political situation.

 

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