Home » General » Munyeza Disposes of Brainworks Stake

Businessman and former chief executive officer of African Sun Dr Shingi Munyeza has sold his stake in Brainworks Capital Management, a private equity investment and aisory firm. Mr Munyeza entered into a share swap agreement with Brainworks after the private equity company bought an initial 32 percent stake in African Sun. Brainworks acquired the three vehicles that were previously controlled by Dr Munyeza through his family trust, Nhaka Trust.

In return Nhaka got 17,02 percent shareholding in Brainworks Capital. However, managing director George Manyere told The Herald Business that Mr Munyeza had disposed of his stake in the investment company following a share-buy back exercise.

Munyeza’s stake is believed to have been worth $7 million but sources say he got a lesser amount as there were liabilities to settle.

Mr Manyere also said that Brainworks had parted ways with Stuart Cranswick who was their partner in Lengrah Investment. After successfully raising $35 million in a capital raise, Brainworks used about $7 million to buy out minorities in Lengrah, the special purpose vehicle holding shares in African Sun and Dawn Properties.

Brainworks increased its shareholding in the hotel group to 55,1 percent after closing its mandatory offer to minorities last week. The offer was at 3 cents, a premium to the trading price over the last couple of months but there are still investors who bought into the counter when it was trading in the 8 cents region.

African Sun is now automatically classified as a subsidiary of Brainworks.

The private equity firm together with Old Mutual now control around 87 percent of the company. It’s not immediately clear what Brainworks will do with the company but speculation is high that they will bring in a reputable foreign investor.

In the circular to shareholders for the offer, African Sun said it was in discussions with a strategic partner to improve the competitiveness and service delivery of its hotels.

Source : The Herald