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Timba increases shareholding in RTG

AFRE Chief Executive Officer Patterson Timba has increased his shareholding in Rainbow Tourism Group (RTG) after British millionaire Nicholas Van Hoogstraten sold his 10% stake in the Zimbabwe Stock Exchange-listed hotel and leisure group.

This comes after 160 million shares were snapped up on the market by Renaissance Securities, a company controlled by Timba on Tuesday in a deal valued at US$4,8 million.
Market sources say Van Hoogstraten’s failure to exercise control on the RTG board earlier in the year forced him to let go of part of his shareholding.
The shares traded at 3 cents, which is above the market price of 1,7 cents.
Terra Partners sold the shares.
Timba is already chairman of RTG after Grace Muradzikwa, then chairperson, opted to resign at an Annual General Meeting (AGM) earlier in the year.
Van Hoogstraten moved a motion to sack Muradzikwa and other directors but his plans suffered after failing to get key backing he needed to push his agenda through.
Should Van Hoogstraten sell his remaining shares, Timba and business associate Strive Masiyiwa could emerge as the majority shareholders in RTG with over 40% of RTG’s issued share capital.
Already, Timba and Masiyiwa own over 24% of RTG’s issued share capital between them.
The British property investor held 463 million shares in RTG, representing 34% of the total issued share capital of the company through Banhams Investments, Messina Investments and Willoughby’s Finance.
But in the past months, the businessman re-registered the shares from Messina to Les Nominees –– controlling 18,23% and EFE Security Nominees 10,91%.
The market read the move as Van Hoogstraten’s desire to dispose the actual investment vehicles owning the shares and not the actual shares themselves.
That way, the market said, selling the company and not the shares would give him the full value of the sale.
The local bourse has a higher transaction cost at 4,5% on selling compared to a regional average of about 2%.
Also Timba is believed to have picked up Herbert Nkala’s 7,34%.
Afre initially held about 13,83% in RTG when shares owned by companies linked to the group were combined a few months back.
In a letter to RTG dated March 11 2009, he proposed that Muradzikwa be removed as non-executive chairperson of RTG. He also proposed that seven other directors be removed for “alleged incompetence”. The seven are Paschal Changunda (group finance director), Canaan Dube, Charmaine Rose Daniels, Godfrey Manhambara, Yarden Mariuma, Elliot Nyoni and Chipo Mtasa, the chief executive officer.
Muradzikwa has since been replaced by Timba after she did not offer herself for re-election.
Van Hoogstraten crossed swords with RTG directors when RTG allegedly did not honour an underwriting agreement it had with the businessman.
Had he underwritten the rights issue, Van Hoogstraten would have emerged with near control of the company depending on the subscription rates for capital raising programme.
Since the underwriting agreement entitled both parties to arbitration in
the event of a dispute, the matter went for arbitration in 2006 before retired Justice McNally.
The arbitration ruled in favour of the RTG board.
in 2007 Van Hoogstraten attended the RTG AGM and demanded a poll vote of all the resolutions including the approval of accounts, appointment of directors and auditors.
Van Hoogstraten lost on this issue with 60% votes against his 34%.
In 2008, the RTG issued the AGM notice with a special resolution for approval of a share option scheme. Van Hoogstraten was against this motion and wrote to express his disapproval and threatened to sue the company if the scheme was implemented.
The shareholders present, voted unanimously in favour of the scheme. However, management has not implemented the scheme as it was hoped that Van Hoogstraten could be positively engaged on the issue.

 

Chris Muronzi

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