First Capital Bank has taken a decisive step in its strategy to streamline operations, announcing a USD 30 million agreement to divest its entire stake in Makasa Sun (Private) Limited, the company that owns the Victoria Falls-based Makasa Sun Hotel — formerly known as The Kingdom Hotel.

The bank has entered into a binding sale agreement with ASB Hospitality LLC, a United Arab Emirates–based investor. Once all regulatory conditions are satisfied, ASB Hospitality will assume 100% ownership of the hotel operator, marking one of the most notable hospitality transactions in Zimbabwe in recent years.

In a statement, First Capital revealed that the purchaser has already deposited USD 3 million into an escrow account, signalling commitment to the deal. The remaining USD 27 million will be paid on completion, pending approval from a range of authorities including the Reserve Bank of Zimbabwe, the Competition and Tariff Commission, COMESA, and the Zimbabwe Revenue Authority.

The bank said the disposal aligns with its long-term strategy to unlock shareholder value by exiting non-core investments and sharpening its focus on core banking operations. The move allows First Capital to redirect resources toward strengthening its financial services portfolio while stepping away from the hospitality sector — a space it has long held through Makasa Sun.

ASB Hospitality, which is backed by an international hotel group, is expected to bring fresh capital and expertise to the Victoria Falls property. Industry analysts anticipate that the acquisition could spark renewed investment in the resort city and help reposition the iconic hotel within the competitive tourism landscape.

First Capital Bank emphasised that the sale will have no material impact on its earnings performance, past or future, as Makasa Sun has been treated as a dormant entity for reporting purposes. As of October 2024, the hotel asset carried a consolidated net asset value of roughly USD 27.9 million, though it has not significantly influenced the bank’s financial statements.

Proceeds from the sale will go toward settling capital gains tax obligations, after which the net amount will be distributed to First Capital Bank and its staff pension fund, the joint owners of Makasa Sun. The transaction will be settled entirely in cash, with no exchange of securities.

Classified as a Category 3 transaction on the Victoria Falls Stock Exchange, the deal requires shareholders and the market to exercise caution until all regulatory approvals have been secured and the disposal is formally completed.

If successful, the transaction will mark First Capital Bank’s full exit from the hospitality sector — a strategic realignment signalling its renewed commitment to core banking and shareholder value creation.