Times Of Swaziland: LOCAL COMPANY SET  TO BUY 3 SUN HOTELS

LOCAL COMPANY SET  TO BUY 3 SUN HOTELS
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Mbongiseni Ndzimandze on 11/04/2023 08:30:00


MBABANE - A local company has been enlisted as the potential buyer of the three
hotels, which were under the management of Sun International Limited.
It was previously reported that the hotels had been sold to Canham Mining
International (Pty) Ltd but the deal fell off. This then resulted in the seller
of the hotels scouting for a new buyer and the local company is said to have
showed interest. It has been reliably gathered that the talks between the seller
of the hotels and the local company are now at an advanced stage. According to
an insider, the conditions of sale were not much different from those that were
in place when the hotels were being sold to Canham Mining International. “The
conditions of sale are almost the same but slightly different. The buyer will be
announced soon as the talks between the parties are nearing completion,” said
the impeccable sources. The source further added that the local company which is
now the potential buyer was not part of those that had previously shown interest
in purchasing the hotels. When reached for comment one of the liquidators, Paul
Mulindwa said: “I cannot give any information at present. I need to consult my
colleagues before I can talk about this matter.”
Arbitration
Canham Mining International (Pty) Ltd had written to the liquidators, seeking
that the sale of the three hotels, which are SwaziSpa Hotel and Casino, Lugogo
Sun, and Ezulwini Sun, be stopped as they had a contract with them. It was
gathered that Canham Mining International (Pty) Ltd had sought that the matter
be sent to arbitration and as such, suggested senior legal professionals for the
arbitration, failing which the Law Society should appoint the arbitrator.
Initially, a sale agreement had been reached between Canham Mining International
(Pty) Ltd and Manzane Estates Limited-Ezulwini Properties Limited in Liquidation
for the sale of SwaziSpa Hotel and Casino, Lugogo Sun, and Ezulwini Sun,
following the liquidation of five companies under Sun International Management
Limited.
Canham had agreed to buy the properties, in a deal that was signed in Matsapha
and Sandton on May 24, 2022. The parties agreed on a price of E782 601 571, with
a 10 per cent deposit due within two days of the signing of the agreement.
However, Canham was reportedly unable to fulfil the agreement. The buyer
allegedly defaulted on the deposit and the final balance, the latter due within
45 days after the signing of the agreement. The deal is alleged to have fallen
through after Canham allegedly defaulted on the agreement. The sale agreement
between Canham Mining International (Pty) Ltd and Manzane Estates
Limited-Ezulwini Properties Limited in Liquidation was signed on May 24, 2022.
The agreement stated that Canham Mining International (Pty) Ltd shall, not later
than 45 days from May 27, 2022; furnish the conveyancers with an unconditional
and irrevocable bank guarantee in favour of Swazi Spa Holdings and its
subsidiaries from a commercial bank registered in Eswatini, for payment of the
balance as approved by the seller.