December 15, 2011
By Paul Nyakazeya
AFRICAN Sun Ltd (ASL) last week parted ways with its developers in Botswana for a management contract at Holiday Inn Gaborone which was valued at 25 million pula (US$3, 9 million) as part of the group’s plan to rid itself of underperforming units. ASL CEO Shingi Munyeza was in Botswana last week finalising the cancellation of the management contract for the Gaborone.
ASL has been battling to shed legacy issues which saw it accrue a loss of US$6,6 million from discontinued operations comprising two loss making units, The Grace Hotel and The Lakes Hotel in South Africa, which the group shut down this year.
The group also disposed of Hotelserve, a unit which Munyeza said had been acquired in 2008 to protect procurement costs by circumventing middlemen.
Munyeza confirmed the development when contacted for comment by businessdigest saying the termination of the contract was purely a business decision and mutual…Read more.