admin
The Moxon Group said it had received Reserve Bank’s exchange control approval to exchange its stake in Meikles with Gondor Capital Limited, which the group controls 100 percent. Previously, the Moxon Group had fragmented shareholding in Meikles Limited and the transfer consolidates the shareholdings.
The dually listed conglomerate said the shareholding exchange would not result in any change in the underlying beneficial ownership of the shareholding in Meikles Limited.
Yesterday, 120 million Meikles Limited shares, almost half of the group’s issued share capital of 245 million shares, changed hands on the Zimbabwe Stock Exchange.
This reflects the effect in share registration in favour of Gondor Capital, now the majority shareholder in the ZSE and London-listed firm. The Moxons hold 49 percent in Meikles.
ALSO SEE
“This transfer consolidates the Moxon Group’s investment in Meikles Limited into one investment group, the position that pertained prior to the 2007 Meikles merger,” said Mr Moxon.
Meikles had entered into a marriage of convenience with Kingdom Financial Holdings, but the union lasted only 18 months due to governance-related irreconcilable differences in the board.
Mr Moxon said most firms in the country were undercapitalised and due to the liquidity crunch in the economy, most of the capital available would be raised offshore.
“The Moxon Group has entered into the transaction, as notified today to shareholders of Meikles Limited, to facilitate these capital inflows (into Meikles Limited),” said Mr Moxon.
He added the consolidation would help the Moxon Group’s efforts over the years to support indigenisation of Meikles and to provide the structure for more investments in Zimbabwe.
Meikles continues to seek external funding from deep-pocketed external investors, having allowed South African retail giant Pick ‘n Pay to raise its stake in TM to 49 percent for capital.
This would result in the South African firm injecting US$29 million into TM Supermarkets for working capital (US$10 million) and capital (US$11 million) projects.
Zimbabwean companies have been struggling to raise capital locally after a decade of financial distress which ended only in 2009.
Online Reporter