Brainworks moves into ASL

Friday 4th October, 2013 on The Herald

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. 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.

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