Nqobile Bhebhe, [email protected]
MEIKLES Limited is seeking shareholder approval to dispose of its 50 percent undivided interest in the Victoria Falls Hotel Partnership to African Sun Limited for US$15 million, in a proposed transaction that could reshape ownership interests in one of Zimbabwe’s premier tourism assets.
The company held the undivided 50 percent lease-and-operations stake in the iconic 149-room Victoria Falls Hotel, which the two companies have jointly run since 1998.
The underlying land and building belong to Emerged Railways Properties, a joint venture between the state railway networks of Zimbabwe and Zambia.
Classified as a Category 1 transaction under Section 253 of Statutory Instrument 134 of 2019, the deal requires shareholder approval at an Extraordinary General Meeting (EGM) and final regulatory consents
In a notice of the EGM, Meikles said the proposed disposal would be undertaken through its wholly owned subsidiary, Meikles Hospitality (Private) Limited, which holds the interest in the partnership.
The virtual EGM is scheduled for October 30, immediately after the company’s Annual General Meeting.
Shareholders will be asked to approve the disposal as an ordinary resolution, alongside a separate resolution authorising the company’s directors to implement the transaction.
The proposed consideration of US$15 million places a clear financial value on Meikles Hospitality’s 50 percent interest in the Victoria Falls Hotel Partnership, although the notice does not disclose further details on the transaction’s payment structure or the intended use of the proceeds.
The transaction will be implemented through a partnership interest cession and transfer agreement, subject to the terms and conditions outlined in a circular sent to Meikles shareholders.
The disposal, if approved, would mark a significant portfolio decision for Meikles as the group considers the value of its hospitality interests and the strategic allocation of capital across its businesses.
This move completes Meikles’ long-term withdrawal from the hotel sector, following its earlier sale of the Meikles Hotel in Harare to Albwardy Investments
For African Sun, the proposed acquisition represents an opportunity to consolidate its interest in the Victoria Falls Hotel Partnership, strengthening its position in a destination that remains central to Zimbabwe’s international tourism profile.
African Sun is funding the buyout and an accompanying US$11 million hotel refurbishment by divesting its Holiday Inn portfolio in Harare, Bulawayo and Mutare.
Victoria Falls is one of the country’s leading tourism attractions, drawing international visitors and supporting demand for accommodation, conferencing, leisure and other hospitality services.
The proposed transaction carries implications beyond the two companies, particularly in the context of Zimbabwe’s broader efforts to expand tourism investment and maximise returns from its established hospitality infrastructure.
Under the second resolution, Meikles directors or a duly authorised committee, would be empowered to amend or vary the transaction’s terms and conditions, provided any changes are not material in the context of the proposed disposal.
The directors would also be authorised to undertake the necessary actions to give effect to the transaction.
Victoria Falls acts as the anchor and highest-earning tourism asset for Zimbabwe, drawing global travellers to see one of the Seven Natural Wonders of the World, experience diverse wildlife offerings and various adventures.
The region is experiencing a major capital influx, with international and regional investors aggressively acquiring and upgrading assets. Notable transactions include Dubai-based Albwardy
Investments purchasing The Kingdom Hotel for US$30 million.
African Sun Limited’s full takeover of the Victoria Falls Hotel by acquiring Meikles’ 50 percent stake highlights how major operators view total control of iconic local assets as critical for long-term luxury yields
