Cresta Marakanelo Listings

Cresta Marakanelo's share price climbed 10thebe to close the listing day on P1.55, driven by strong interest from punters eager to tap into the hospitality giant's first day of trade on the Botswana Stock Exchange (BSE). Cresta, the domestic board's 21st counter, listed on the BSE on June 28 where 352 416 shares exchanged hands.
 
The listing marked the end of a divestment process by Botswana Development Corporation which offloaded its 62.9 million shareholding in Cresta Marakanelo via a private placement, employee scheme and Initial Public Offer (IPO). The IPO, with an offer of 40.7 million shares at P1.45, was 94 percent subscribed, paving way for Cresta's listing on The Botswana Stock Exchange. For her part, Cresta Marakanelo Chairperson, Maria Nthebolan, said the listing was a milestone in the company's 36-year history in Botswana. She said listing would enable Cresta Marakanelo to consolidate its position in the market while pursuing opportunities further afield.

As at the year ended 30 June 2010 the directors declared a dividend of 2thebe per share, payable to shareholders registered at the close of business on 22 October 2010 for payment on 4 November 2010. This follows the adoption of a dividend policy that takes into account the refurbishment programme, investment decisions and any prevailing economic conditions. The dividend declared therefore takes into account the impending refurbishment of Mowana Safari Lodge and Cresta Bosele.

BDC divested from Cresta Marakanelo in May 2010 as part of its divestment strategy which will see the corporation divesting from projects it deems stable with prospects of further growth. This divestment strategy included private placement, employee scheme and Initial Public Offering of the shares held by BDC in Cresta Marakanelo. Happening in the aftermath of a global economic downturn, the divestment shows the confidence the corporation has in the stability and growth of Cresta Marakanelo and the tourism industry. This move has made Cresta Marakanelo the third hotel and tourism organization in Botswana to be publicly listed joining Chobe Holdings and Wilderness Safaris.  

The Cresta Marakanelo and BDC relationship dates back from 1987 when the company was still known as the BDC Hotel Management Company. This 23 year old relationship has given birth to eight hotels, which is in fact, the biggest hotel chain in Botswana; including the flagship Mowana Safari Lodge in Kasane. From a portfolio of 247 rooms, the company now manages 724 spread around the country's urban and tourist destinations.   In its strategic plan for this year, BDC decided to divest from projects which have matured and no longer need the safety net of the Corporation.