BID FOR MULTI-MILLION EMALANGENI SPA PROPERTIES

MBABANE – An opportunity to own both movable and immovable properties belonging to liquidated Swazi Spa Holdings is now being provided.

In July this year, the High Court of Eswatini issued a final order for the liquidation of five companies under Sun International Management Limited. Liquidation means that the business is not able to pay its debts. It further implies that the business will cease to operate (generally as a result of financial problems). The court had previously issued an interim order placing the companies under provisional liquidation. Judge Cyril Maphanga issued a final order for the liquidation of the companies. Months after the liquidation, the  Eswatini Stock Exchange (ESE) delisted the company.

Following the above-mentioned developments, the company through liquidator and lawyer Marisa Boxshall-Smith is now inviting requests for proposal (RFP) from organisations/institutions for the acquisition of the moveable and immovable property belonging to Swazi spa and its subsidiaries. The subsidiaries are Swazispa Development Company Limited, Manzana Estates Limited, Ezulwini Properties (Pty) Ltd and Spa Financing Company Limited. Even though the costs of the properties could not be immediately ascertained, they are believed to be more than E100 million.

Proposals

A detailed request for proposals document is available from Boxshall-Smith. The latter can be contacted via email at marisa@boxshallsmith.com or telephonically on 7802 1038. “Interested organisations/institutions are expected to pay an amount of E5 000 non-refundable fee to have access to the RFP documents. The non-refundable fee shall be paid to the bank account of Swazi spa and its subsidiaries in liquidation. Banking details can be obtained from the liquidator,” shared the liquidator.

All requests for proposal must be submitted as specified in the RFP document no later thanJanuary 14, 2022 at 6pm. “It is the responsibility of all organisations/institutions to ensure their RFP reaches the liquidator on or before January 14, 2022,” stressed the liquidator. Meanwhile, at the time of the liquidation. Swazi Spa Holdings’ market capitalisation was calculated at over E41.9 million. Market capitalisation refers to how much a company is worth as determined by the stock market. It is defined as the total market value of all outstanding shares. Shares outstanding refer to a company’s stock currently held by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

According to Investopedia, any authorised shares that are held by or sold to a corporation’s shareholders, exclusive of treasury stock which is held by the company itself, are known as outstanding shares. Meanwhile, the court appointed the lawyer as the provisional liquidator of the five companies inclusive, with all powers, direct and ancillary to the joint winding up of the companies. Usually, when a publicly-listed company ceases operations and goes into liquidation, the company’s shareholders may be entitled to a portion of the assets, depending on the type of shares they hold. However, the stock itself is usually worthless.

If a company has shut its doors for good, its assets will be sold and the entire proceeds will be distributed to its creditors in a strict order of precedence. The common shareholders may, at best, get a portion of their value back when the assets are distributed. The amount of the payment a common shareholder will receive is based on the proportion of ownership they have in the bankrupt firm. Swazi Spa, on the other hand, is one of only eight companies listed on the country’s stock exchange.

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