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| Business |
| MDC courts investor into Sunbird Limited |
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by Ephraim Munthali, 22 April 2004
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17:01:38
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Malawi Development Corporation (MDC) is negotiating with a potential investor willing to buy shares in Sunbird Tourism Limited.
Sunbird company secretary Maureen Kachingwe confirmed the on going talks on Wednesday but referred the issue to MDC.
The Corporation’s general manager Stuart Malata promised to comment in the afternoon but his phone went unanswered when he was contacted again.
MDC, the government’s investment arm, owns 71 percent of the hotel chain and the public owns the remainder through the stock market.
Last week, Sunbird advised its shareholders to be cautious when dealing in the company’s securities because “negotiations are taking place which may have a material effect on the price of the company’s securities.”
“Accordingly, shareholders are advised to exercise caution when dealing in the company’s securities until a full announcement is made,” said a cautionary statement from Sunbird published last week.
Sunbird was listed on the Malawi Stock Exchange (MSE) in 2002 with an initial offer of more than 200 million shares.
The company’s stocks have since then struggled to attract investors until February this year when a block sale of more than 40 million shares was transacted.
Kachingwe could not say who had bought the shares. Market sources say they expect some changes in shareholding at the tourism giant.
Coincidentally, the cautionary statements and the talks come barely a week after MDC sealed a deal with financiers to get extra funding to finish the construction of Namiwawa Hotel.
MDC used Sunbird as collateral to get funds for the hotel. Development Bank of Southern Africa (DBSA) is the major financier followed by PTA Bank and Stanbic Bank.
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