First Capital finalises US$30m Kingdom Hotel disposal to ASB

 First Capital Bank Limited has completed the long-awaited disposal of Makasa Sun, drawing the curtain on a US$30 million transaction and handing control of the iconic Kingdom Hotel in Victoria Falls to United Arab Emirates (UAE)-based ASB Hospitality.

The Victoria Falls Stock Exchange-listed lender announced that the transaction had been successfully concluded following months of regulatory approvals and shareholder cautionary statements dating back to September last year.

In a notice signed by company secretary Ms Sarudzai Binha, the bank said, “The Board of Directors of First Capital Bank Limited wishes to advise shareholders and the investing public that the disposal transaction has been successfully completed.”

The company also confirmed the withdrawal of the cautionary announcement that had remained in place during negotiations and regulatory processes.

Shareholders were initially advised in September 2025 that the bank and its co-shareholder were engaged in discussions regarding the disposal of their interest in Makasa Sun.

The transaction marks one of the more significant hospitality-sector acquisitions in Zimbabwe in recent years and reinforces growing Gulf investor interest in the country’s tourism assets, particularly in Victoria Falls and Harare.

Under the agreement, ASB Hospitality acquired the entire shareholding in Makasa Sun from First Capital Bank and the First Capital Bank Staff Pension Fund. Makasa Sun’s principal asset is the Kingdom Hotel, one of Victoria Falls’ best-known hospitality properties.

The finalisation of the transaction follows exchange control approval granted earlier this year by the Reserve Bank of Zimbabwe, while competition clearances and tax approvals were also required before the transaction could be finalised.

Earlier this year, the bank confirmed progress on the deal, saying, “The transaction has now received exchange control approval and is awaiting the remaining regulatory approvals.”

The parties had agreed that ASB Hospitality would pay US$30 million for the asset, with an initial US$3 million deposit having already been placed in escrow pending completion. The balance of US$27 million would be released once all conditions precedent had been satisfied.

The deal adds to ASB Hospitality’s expanding footprint in Zimbabwe’s hospitality industry. The UAE investor acquired the Meikles Hotel in Harare in 2019, which was later rebranded as Hyatt Regency The Meikles Harare following refurbishment and repositioning efforts.

Its latest acquisition comes at a time when Zimbabwe’s tourism industry continues to rebound strongly after the disruptions caused by the Covid-19 pandemic.

International arrivals and tourism receipts have been recovering rapidly, aided by aggressive destination marketing, improved regional air connectivity and Government-backed investment incentives.

Victoria Falls, in particular, has become a focal point for international hospitality capital, benefiting from its status as Zimbabwe’s premier tourism destination and its strategic positioning within the regional safari and conferencing market.

Industry analysts say foreign investor appetite for high-end tourism assets has remained resilient despite broader macroeconomic pressures affecting the country.

The transaction also provides First Capital Bank with an opportunity to unlock value from a non-core investment while strengthening liquidity and capital flexibility at a time when banks are increasingly focusing on core financial services operations.

At the time the transaction was initially announced, Makasa Sun had a consolidated net asset value of approximately US$27,98 million. First Capital Bank held a 50 percent economic interest in the company valued at around US$15 million, with the balance owned by the bank’s staff pension fund.

The bank had previously classified Makasa Sun as a dormant entity and did not consolidate it into group financial statements, suggesting limited operational integration with its banking activities.

First Capital had also indicated earlier this year that the disposal was not expected to materially affect earnings, headline earnings per share or net asset value, aside from transaction-related costs and taxation adjustments.

Source: First Capital finalises US$30m Kingdom Hotel disposal to ASB (03/05/2026)