LISTED financial services provider First Capital Bank has signed a share purchase agreement with ASB Hospitality LLC for its shareholding in hotel operator Makasa Sun (Pvt) Limited.
This marks another strategic expansion into Zimbabwe’s tourism industry by the United Arab Emirates-based ASB Hospitality, following its 2019 acquisition of the iconic Meikles Hotel in Harare, which has since rebranded as Hyatt Regency Harare-The Meikles.
The Kingdom Hotel, one of Victoria Falls’ most spectacular properties, closed in early 2023 following a lease dispute with the former operator, Africa Sun Limited. The landmark is now expected to reopen under a new brand after its acquisition is completed. Its sole asset is currently named the Makasa Sun Hotel (formerly The Kingdom Hotel), owned by Makasa Sun (Pvt) Limited.
Victoria Falls Stock Exchange-listed First Capital Bank currently holds a 50 percent stake in Makasa Sun (Pvt) Ltd. ASB’s expansion comes as Zimbabwe’s tourism industry enters a strong recovery phase, recording significant growth in international arrivals and revenue, and earning global recognition as a top destination.
The sector is benefiting from Government incentives and the creation of special economic zones, attracting investment despite global headwinds.
In a statement, First Capital confirmed it had entered into a binding agreement with ASB Hospitality, registered in the UAE, for the sale of all issued ordinary shares and redeemable preference shares in Makasa Sun. Upon completion, ASB will acquire 100 percent of the issued share capital.
“Further to the cautionary statements issued on 17 September, 8 October and 29 October 2025, the directors of First Capital Bank wish to advise all shareholders and the investing public that the company and its co-shareholder, First Capital Bank Staff Pension Fund, have signed a share purchase agreement with ASB Hospitality LLC regarding the proposed disposal of their respective shareholdings in Makasa Sun (Private) Limited,” said company secretary Ms Sarudzai Binha.
“The total consideration for the sale of all issued shares in Makasa Sun is US$30 million, payable as follows: A deposit of US$3 million has been settled and placed in escrow pending completion; and the balance of US$27 million is to be paid in full on the completion date against the transfer of the sale shares.
“The net assets subject to the transaction comprise all ordinary and preference shares representing 100 percent of Makasa Sun’s issued share capital, including the hotel, jointly held by First Capital Bank Limited and First Capital Bank Pension Fund.”
Ms Binha said as of October 31 2024, the consolidated net asset value attributable to Makasa Sun amounted to US$27,98 million.
“First Capital Bank Limited holds a 50 percent interest in Makasa Sun and does not fully consolidate its financials. The transaction will result in the full disposal of Makasa Sun from the bank’s consolidated group,” she said.
She said that the disposal would replace recorded assets with cash proceeds of an equivalent amount, meaning the bank’s net asset value and net tangible assets per share are not expected to materially change, except for adjustments related to transaction costs, taxes and subsequent application of proceeds.
“As Makasa Sun has been classified as a dormant entity, the transaction is not expected to have a significant pro forma effect on the bank’s historical earnings or headline earnings per share,” said Ms Binha.
She added that the rationale for the transaction is to unlock shareholder value through divestment of a non-core hospitality asset, enabling the bank to focus on core banking and financial services.
“The sale to ASB Hospitality LLC, a renowned international hotel owner supported by global hotel operator brands, is anticipated to enhance the strategic positioning of Makasa Sun Hotel and support further investment in Zimbabwe’s hospitality sector,” she said.
Proceeds from the sale will be applied to settle capital gains tax obligations to Zimra, distribute net proceeds to the bank and the fund in line with their shareholdings, reinvest in core business activities and pension fund obligations.
The transaction is for cash only, with no securities being received as consideration.
As of September 17 2025, the date of the first cautionary statement, Ms Binha said the bank’s market capitalisation stood at US$134 million. The bank’s 50 percent equity interest in Makasa Sun is valued at US$15 million, representing 11,19 percent of its market capitalisation. In terms of VFEX listing requirements, the transaction qualifies as a category three transaction, and the company will comply with all applicable disclosure requirements.
