Meikles expedites Victoria Falls Hotel exit

TAFADZWA CHINYANGANYA

Publicly traded Meikles Limited is moving to fast-track its exit from the Victoria Falls Hotel after agreeing to sell its 50% stake in the iconic property to African Sun Limited, potentially giving the tourism group full control of the hotel.

In a cautionary statement Meikles said its wholly owned subsidiary, Meikles Hospitality (Private) Limited, had entered into a cessation agreement with African Sun for the disposal of its undivided 50% interest in the Victoria Falls Hotel Partnership.

“The transaction is classified as a Category 1 transaction under Section 253 of Statutory Instrument 134 of 2019,” the company said.

Meikles said it was finalising a circular to shareholders, which will include notice of an Extraordinary General Meeting to consider and approve the transaction.

The latest development follows months of changes in Meikles’ position on its hospitality interests. The company had earlier indicated that it would retain its 50% interest in the Victoria Falls Hotel before subsequently entering into discussions to dispose of the stake.

The latest agreement now places the proposed exit before shareholders for approval.

The Victoria Falls Hotel has been operated through a 50:50 partnership between African Sun and Meikles Hospitality since 1998.

African Sun has outlined an investment programme of about US$11 million to refurbish the property, with the planned works aimed at upgrading the hotel while preserving its heritage character.

Meikles, however, warned that the transaction could have a material effect on the value of its shares.

The financial terms of the transaction have not been disclosed in the cautionary statement.