Zimsun 1st quarter 74% ahead of budget

Staff Writer.

ZIMSUN Leisure group first quarter to June 30 was ahead of budget by about 74% with overall occupancy at about 40%.


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nternational guests in the quarter under review improved to 26% from 23% in the mix, the difference being local guests.


“First quarter results were pleasing and the introduction of Elephant Hills has been showing improvement,” group chief executive officer Shingi Munyeza said.


The group’s property company, Dawn Properties, capitalised to the tune of $22,9 billion, will embark on a capital-raising project within six to nine months after listing on September 9, Munyeza said.


The chief executive would however not divulge what form the capital raising process would take, saying it could be in the form of a rights issue or borrowings.


“We will see what would be the best option but we expect to raise quite a substantial amount of money to develop more properties which are non-hotel,” Munyeza said.


The proposal is however subject to shareholder approval at a September 5 emergency general meeting (EGM).


The unbundling of Zimsun’s interest in Dawn Properties will be by way of a distribution in specie of Zimsun’s 80,01% ordinary shareholding in Dawn to current Zimsun shareholders.


The company will initially run Zimsun’s 10 properties countrywide and will develop more properties which are non-hotel.


Zimsun chairman Eben Makonese told shareholders at the annual general meeting regulatory approvals for the demerger and listing of the property company had been met.


Zimsun said for many years “the value of the real estate owned by the company has not been reflected in the market value of the company and the one-for-one listing would ensure that value to current shareholders is not lost”.


Since the demerger from Delta Corporation Ltd as well as management changes after a consortium led by Munyeza acquired 35% shareholding, the company has returned to profitability posting attributable profit of $3 billion in the year to March 31.

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