SWAZISPA SELLS 50.6% SHARES TO TIBIYO

MBABANE – It has been confirmed. 

Swazispa Holdings Limited is selling its All Saints Proprietary Limited to Tibiyo TakaNgwane as previously reported in this publication. 

In a statement issued by the Swazispa Holdings Limited (‘Swazispa’), they advised  shareholders that All Saints Proprietary Limited (‘All Saints’) are in discussions with The Ingwenyama in Trust for emaswati (‘Ingwenyama’) that, if successful, would result in the disposal of All Saint’s effective 50.6 per cent shareholding in Swazispa to the Ingwenyama.

 This will result in the Ingwenyama increasing its effective 39.7 per cent interest in Swazispa to 90.3 per cent. 

condition

“If successful, the Ingwenyama acquisition will be subject to fulfilment or waiver of certain condition precedents including inter alia the finalisation of transaction documents and regulatory approvals. Accordingly, shareholders are advised to consult their professional advisors and exercise caution when dealing in the Company’s securities until a further announcement is made,” read the statement. 

Tibiyo TakaNgwane Managing Director Absalom Themba Dlamini confirmed the sale of the shares to the entity. However, he stated that nothing had been finalised yet as the deal was still being negotiated.

“It is true that Tibiyo is negotiating with Swazispa Holdings Limited for the sale of the All Saints Proprietary Limited to Tibiyo but nothing has been finalised yet. Once everything has been finalised, we will issue a statement to inform the nation,” he said. 

Employees under Swazispa Holdings Limited have been in a court battle with their employer over terminal benefits due to the sale of the shares to Tibiyo and the matter is still ongoing at CMAC. 

Also communicated in the statement is that during the anticipated closure period, the group would continue to operate on a limited staff basis, with only a handful of key and essential personnel remaining on the premises to ensure the general maintenance and security thereof. It was stated that while Swazispa continues to engage with its various lenders to ensure that its credit facilities are maintained, the full financial impact of the Corona virus on the Company would only be determined once the business operations resume and its ramifications properly assessed. 

“With reference to the cautionary announcement dated May 22, 2020 regarding the nationwide partial lockdown and National Emergency in an attempt to curb the spread of the Corona virus pandemic, Swazispa Holdings Limited would like to update its stakeholders as follows: As per legal notice number 135 dated June 19, 2020 published in the Eswatini Government Gazette, the magnitude and severity of the outbreak of the Corona virus (COVID-19) pandemic was classified by the Prime Minister of Eswatini as a National Disaster in terms of the Disaster Management Act of 2006”.

statement

The statement stated that a national Emergency in the Kingdom of Eswatini was declared with immediate effect (on June 19 2020) for a period of two months. With the COVID-19 pandemic still haunting the world, Prime Minister Ambrose Mandvulo Dlamini extended the National Emergency declaration by another period of two months on September 18, 2020. 

Although the National Emergency ended on November 18, 2020, it was decided that Swazispa operations remain closed. Swazispa closed all of its Resort operations from Monday, March 30, 2020. 

Swazispa’s main source of income is South Africa and therefore the anticipated closure period will mainly depend on the operational issues and requirements at the points of entry in the Kingdom of Eswatini (borders with South Africa). Significant action is being taken to reduce costs during the lockdown and closure period. 

developments

“Stakeholders will be kept appraised of developments in this regard. 

Notwithstanding these extraordinary and uncertain times, the board and management of Swazispa remain fully committed to ensuring the future viability and sustainability of the group and are taking every reasonable step to minimise the impact on the employees, suppliers and business partners”.

The company stated that the closure of the Resort operations would have a significant impact on the revenue and profitability of the Company and consequently there could be an adverse effect on the price of the Company’s securities. 

Accordingly, shareholders are advised to consult their professional advisors and exercise caution when dealing in the Company’s securities until a further announcement is made. 

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