Meikles UAE deal falls through, no de-lisiting
ZIMBABWEAN conglomerate, Meikles, is no-longer pursuing a de-listing of its shares from the Zimbabwe Stock Exchange (ZSE) after it said yesterday that a deal by an investor to acquire a controlling stake in the company had failed to materialise.
Meikles is one of Zimbabwe’s oldest corporations with interests in city and resort hotels, agro-processing and retailing. It has a partnership in Zimbabwe’s TM Supermarkets together with Pick n Pay, with some stores now carrying the South African grocer’s brand.
United Arab Emirates-based Albwardy Investment had been confirmed as the potential suitor for Meikles. The UAE holding company had withdrawn its offer to purchase a controlling stake.
“Albwardy has informed Meikles that it is withdrawing 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,” Thabani Mpofu, secretary for Meikles said.
This prompted Meikles to lift a cautionary on trade in its shares on the ZSE. Albwardy has interests ranging from food distribution, retail, construction, shipyards to hospitality and hotels.
Meikles has long mulled exiting the ZSE after its stock was temporarily suspended from the bourse. The decision to suspend its stock was premised on allegations that the company had overstated a debt it was owed by the Reserve Bank of Zimbabwe.
In the year to end March this year, Meikles posted an improved pre-tax profit of $5.3 million (R70.4m) compared to a $17.8m loss in the prior year.