By : Mernat Mafirakurewa
3 June 2012
Board changes are looming at listed property concern, Dawn Properties, amid indications there have been changes at the companys shareholding structure.

On Wednesday this week, over 220 million shares exchanged hands on the stock exchange representing just under 10% of its issued share capital.

Two special bargains one valued at $1,58m involving 131 754 124 at 1,2 cents per share and the other valued at slightly over $1m after 90 million shares were sold sailed through.

The development comes at a time when Dawn issued a cautionary statement advising shareholders it was forging ahead with efforts to eject listed hospitality group African Sun Limited (ASL) from its leased properties.

Shareholders are advised that legal proceedings seeking the eviction of African Sun from the eight hotel properties have been instituted.

In light of this development, shareholders are advised to exercise caution when dealing in the companys shares, Dawn said in a cautionary statement.

The property company, through its subsidiaries Gold Coast Properties and Laclede Investments, has lease agreements for Hwange Safari Lodge in Hwange, Holiday Inn Mutare, Carribea Bay Sun in Kariba, Elephant Hills Hotel in Victoria Falls, Crowne Plaza Monomotapa Hotel in Harare, Express Holiday Inn in Beitbridge and Troutbeck Hotel in Nyanga with ASL.

However, sources said the cautionary statement issued by Dawn was merely procedural, as it should have done so before it lodged its case with the High Court.

There are likely going to be board changes at Dawn properties in the coming few weeks.
The special bargain deals indicate that there is a change in the shareholding structure, a source close to the development said.

ASL and Dawn have in the past two months been in talks over the leases and a conclusion on this matter is imminent.

ASL chief executive officer Shingi Munyeza recently told NewsDay the company had so far agreed on leases for seven out of the eight hotels it handles.

Dawn Properties approached the High Court under case number HC3014/12 seeking cancellation of eight property leases. Munyeza said the two companies entered into a 50-year lease agreement and 10 years had lapsed since the signing of the agreement.

We are inexplicably joint at a landlord and shareholder level, Munyeza said then.

We hope before June we will conclude discussions, but unfortunately I cannot comment on the legal issues.