Hospitality group, African Sun Limited has announced its migration to the Victoria Falls Stock Exchange (VFSE), joining a number of local business entities that have dumped the Zimbabwe Stock Exchange (ZSE) for the more attractive foreign currency bourse.
The VFEX is a subsidiary of the ZSE that was launched in 2020 to operate in the Victoria Falls special economic zone, enabling investors to operate without exchange control risks using US dollars.
African Sun Limited announced its migration in a Wednesday advisory to shareholders.
“The Directors of African Sun Limited (the Company) wish to advise shareholders and the investing public that the Board has approved the delisting of the Company from the Zimbabwe Stock Exchange, immediately followed by its listing on the Victoria Falls Stock Exchange (the Transaction).
“Further details of the transaction will be provided to shareholders once all regulatory processes have been finalised.
“Shareholders are therefore advised to exercise caution and consult their professional advisers when trading in the company’s shares,” said the group.
African Sun Limited is a hospitality management company involved in the running of hotels, resorts, casinos, and timeshare operations in Zimbabwe and South Africa.
African Sun Limited runs the Holiday Inn Harare, the Holiday Inn Bulawayo, Holiday Inn Mutare, Monomotapa, Elephant Hills Resort, Carribbea Bay Resort, Great Zimbabwe Hotel, Troutbeck Resort, and the Hwange Safari Lodge.
Businesses have noted with concern the government’s unpopular policy interventions in the ZSE which has been affecting investment returns.
Economists say the VFSE has flexible exchange rate controls, the ability to raise capital in hard currency, with lower trading fees, enhancing marketability and market capitalisation for businesses.
African Sun joins companies such as Caledonia Mining Corporation, crocodile breeder Padenga Holding, and Axia Corporation which runs business units such as the TV Sales and Home and the Transev and Distribution Group.
National Foods Holdings Limited, Seed Co, and Bindura Nickel Corporation are also some of the companies that have switched to VFSE.