Nyashadzashe Ndoro
Chief Reporter
Listed hospitality giant, Rainbow Tourism Group Limited (RTG) has announced that it has signed a sale and purchase agreement to acquire the entire issued ordinary shares of Briolette Services (Private) Limited, trading as Montclair Hotel and Casino.
According to a cautionary statement issued by the company, the purchase consideration for the acquisition is US$5 million. However, the conclusion of the transaction is subject to the fulfillment of various conditions precedent.
The company has advised shareholders and the investing public to exercise caution when dealing in the company's securities, as the transaction may have a material effect on the price of the company's securities if successfully concluded.
RTG has assured stakeholders that it will issue a full press announcement in compliance with relevant regulatory requirements in due course. The company is currently engaged in the necessary processes to finalise and execute the sale and purchase agreement, including satisfying all conditions precedent.
"The Company is now engaged in the necessary processes to finalise and execute the Sale and Purchase agreement including satisfying all conditions precedent," Tapiwa Mari, RTG company secretary, stated.
"If successfully concluded, the transaction may have a material effect on the price of the company's securities. Therefore, shareholders are advised to exercise caution and to consult their professional advisors when dealing in the company's securities.
"The Company shall issue a full press announcement in compliance with relevant sections of the regulatory requirements in due course."
The acquisition of Montclair Hotel and Casino would mark a significant expansion of RTG's portfolio.
Rainbow Tourism Group (RTG) emerged victorious in a competitive bid to acquire Montclair Hotel and Casino, outpacing other interested buyers, including the Public Service Pension Fund. Currently, RTG's portfolio comprises six hotels.
The hotel is located in Nyanga, the Eastern Highlands of Zimbabwe.
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