adminAccording to the company’s half-year financial results ending 30 September 2011, the chairman Mr John Moxon said the mega store would be opened at the former Jaggers site in Msasa.
He said regulatory approval had been granted for Pick n Pay to increase its shareholding in TM Supermarkets (TM) from 25 percent to 49 percent.
“This investment will unlock opportunities for TM Supermarkets.
“The success achieved in obtaining most of the requisite approvals for the Pick n Pay investment into TM Supermarkets and of the company being accorded its indigenisation recognition all augur well for the future,” he said.
During the period under review, TM has remained the biggest contributor to the group, posting a 36 percent increase in revenues to $136,6 million.
However, the Meikles group posted a $5 million loss for the half year and this was attributed to high financing cost.
Although the group recorded a 39 percent increase in revenues to $165,5 million, the $4,3 million in finance cost weighed down the Zimbabwe Stock Exchange listed firm.
“The weighted average cost of borrowings was 15 percent per annum. Interest rates have remained high due to tight liquidity conditions and this has constrained the recovery process not just of the Meikles Group but industry as a whole,” said Mr Moxon.
Online Reporter