Times Of Swaziland: BID FOR MULTI-MILLION EMALANGENI SPA PROPERTIES

BID FOR MULTI-MILLION EMALANGENI SPA PROPERTIES
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BY ASHMOND NZIMA on 23/12/2021 09:41:00


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.