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Business Reporter
Dubai-based Albwardy Investment (Albwardy) group has abandoned its plans to take over diversified Zimbabwean hospitality group, Meikles Limited.
Discussions for the possible takeover had been going on for months.
Founded in the 1970s, Albwardy is a diversified group with operations in over 20 countries, with subsidiaries in sectors such as food distribution, retail, construction, shipyards, hospitality and hotels.
On the other hand, Meikles Limited, with operations spanning over a century, has companies in retail, hotels and hospitality as well as the financial sector.
The proposed transaction was expected to subsequently lead to the delisting of Meikles.
“Meikles Limited is advising its shareholders that Albwardy has withdrawn its interest in acquiring a majority stake in the company.
“Accordingly, shareholders are being advised that the caution that was placed on trading in the Company’s shares has now been lifted,” Meikles Limited Company Secretary Thabani Mpofu in a cautionary statement.
Albwardy Investment whose chairman is Dubai based billionaire Ali Albwardy has subsidiaries in hospitality, food, trade, industry, insurance, logistics, industrial engineering and construction, entertainment services, fast moving consumer goods distribution and lifestyle among others.
The collapse of the deal comes at a time when Meikles Limited is slowly crawling back to profitability after recording a pre-tax profit in the year to March 2017 from an $18 million loss at the same level last year.
The group reported a $5,4 million pre-tax profit and also narrowed its net loss to $746 000 from $22,68 million previously.
With an annual turnover of more than $1 billion, Albwardy’s acquisition of Meikles would have expanded its footprint in Africa as it already has operations in Tanzania ad Zanzibar.
Online Reporter