First Capital Bank to sell former ‘Kingdom Hotel’ stake in USD 30m deal

 First Capital Bank has announced a binding agreement to dispose of its full shareholding in Makasa Sun (Private) Limited, the company that owns the Makasa Sun Hotel, in a transaction valued at USD 30 million.

The Makasa Sun Hotel is the one formerly known as The Kingdom Hotel in Victoria Falls.

The deal, signed with ASB Hospitality LLC of the United Arab Emirates, will see the foreign investor acquire 100% of the hotel operator’s issued shares once all conditions precedent are met.

According to the bank’s latest statement, the purchaser has already placed a USD 3 million deposit into escrow, with the remaining USD 27 million to be paid upon completion. The sale is subject to regulatory approvals, including clearance from the Reserve Bank of Zimbabwe, the Competition and Tariff Commission, COMESA, and the Zimbabwe Revenue Authority.

First Capital Bank said the disposal forms part of a strategic shift to unlock shareholder value by exiting non-core assets and refocusing on mainstream banking activities. ASB Hospitality, backed by an international hotel group, is expected to reposition the Makasa Sun Hotel and stimulate further investment in Zimbabwe’s tourism sector.

The bank emphasised that the sale will not have a significant impact on its historical or future earnings, as Makasa Sun has been recorded as a dormant entity. As at October 2024, Makasa Sun had a consolidated net asset value of approximately USD 27.9 million, though it has not been significantly reflected in the bank’s consolidated financials.

Proceeds from the transaction will be used to settle capital gains tax obligations and to distribute net receipts to both the bank and its staff pension fund, which jointly owned the hospitality asset. No securities are being exchanged as part of the agreement, and the deal will be settled entirely in cash.

The transaction qualifies as a Category 3 transaction on the Victoria Falls Stock Exchange. First Capital Bank advised shareholders and investors to continue exercising caution until full regulatory approval is confirmed and the disposal is finalised.

Source: First Capital Bank to sell former ‘Kingdom Hotel’ stake in USD 30m deal (20/11/25)