daniel chigunwe
Business Writer
Zimbabwe Stock Exchange-listed entity Meikles Limited has announced it is in discussions to dispose of certain of its assets.
Without disclosing the assets, as is the norm with cautionary statements, non-execuitive chairperson John Moxon said the proposed disposal transaction may constitute a “Category 1” transaction under Section 253 of SI134/2019.
“Accordingly, the Company would be seeking the approval of its shareholders for the proposed disposal at an Extraordinary General Meeting (‘’EGM’) to be convened at a future date.
“If concluded, the transaction may have a material effect on the Company’s shares. The Directors advise the shareholders of Meikles Limited and the public to exercise caution when dealing in the shares of Meikles Limited,” reads part of the cautionary statement.
Meikles has four business units under its arm.
Its flagship entity is the TM Pick n Pay which it owns 51 percent while the balance is owned by partner Pick n Pay SouthAfrica.
The second segment is the Hotel Business (Victoria Falls Hotel) which it runs as a joint venture with African Sun.
There is also the Properties and Security Services business.
A total 97 percent of the Group’s revenue comes from the supermarket division.
The last couple of years has seen Meikles desposing some of its key assets.
First to be sold was the flagship Meikles Hotel now the Hyatt Regency Harare The Meikles. It was sold to Dubai-based Albwardy Investments for US$20 million in 2019.
In 2021, agriculture concern Tanganda was demerged by way of a dividend in specie to Meikles Shareholders.
Meanwhile, a “Category 1” transaction under Section 253 of SI134/2019 is a transaction “where any aggregate percentage ratio is 30 per centum or more”.
The percentage ratios are the figures, expressed as a percentage, resulting from each of the following calculations; consideration to market capitalisation — the consideration divided by the aggregate market value of all the equity securities of the listed company;dilution — the number of securities issued by an issuer as consideration for an acquisition compared to those in issue prior to the transaction.
According to the ZSE’s listings requirement, figures used for categorisation purposes must be the aggregate market value of all those securities before the announcement of the transaction or, in the case of consideration in the form of a new class of securities for which an application to listing will be made, the issue price of such securities or, if no price can be determined for that new class of securities, the expected aggregate market value of the securities in that class.
Bongani Ndlovu