Source: Meikles considers exit from hospitality business – herald
Nqobile Bhebhe, nqobile.bhebhe@chronicle.co.zw
MEIKLES Limited is considering exiting the hospitality sector after announcing that it is engaged in discussions over the possible disposal of its remaining interest in hospitality operations.
In a cautionary statement, the diversified group said the proposed transaction could have a significant impact on the company and may materially affect the value of its shares.
“The Directors of Meikles Limited (‘the Company’) wish to advise shareholders and the investing public that the Company is currently engaged in discussions relating to the potential disposal of its remaining interest in hospitality operations,” the company said.
The latest development signals a possible strategic shift for the listed group, which has interests spanning retail and hospitality.
If concluded, the transaction would mark a major restructuring move for Meikles, one of Zimbabwe’s longest-established corporate entities.
The company indicated that the proposed deal may qualify as a “Category 1” transaction under Section 253 of Statutory Instrument 134 of 2019, meaning shareholder approval would be required before implementation.
“The proposed transaction may constitute a ‘Category 1’ transaction in terms of Section 253 of Statutory Instrument 134 of 2019.
“Accordingly, the Company will seek shareholders’ approval for the proposed disposal at an Extraordinary General Meeting (‘EGM’) to be convened in due course,” reads part of the statement.
Under Zimbabwe Stock Exchange regulations, a Category 1 transaction is considered significant because of its size relative to the listed entity and typically requires enhanced disclosures and shareholder approval.
Meikles indicated to investors that the discussions remain ongoing and advised caution when trading in the company’s shares.
“If concluded, the transaction may have a material effect on the value of the Company’s shares.
“Accordingly, shareholders of the Company and the investing public are advised to exercise caution or should consult their professional advisors when dealing in the Company’s shares until a full announcement is made,” the company said.
The hospitality industry remains one of Zimbabwe’s key economic sectors, supported by growing tourism activity, conferencing business and investment into tourism infrastructure.
The company has not yet disclosed the identity of the potential buyer or the value of the proposed transaction.
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