Meikles explores exit from hospitality industry

STAFF WRITER

Meikles Limited, the publicly traded diversified group, is in discussions over a potential disposal of its remaining interest in hospitality operations, in a move that could mark the company’s full exit from the sector, Business Times can report.

The development was disclosed by company secretary Batanai Peresuh, who said the proposed transaction could materially affect the value of the group’s shares if successfully concluded.

“The directors of Meikles Limited wish to advise shareholders and the investing public that the company is currently engaged in discussions relating to the potential disposal of its remaining interest in hospitality operations,” Peresuh said.

The proposed transaction signals a potential strategic realignment for the group, whose interests span retail and hospitality. If completed, the disposal would represent a significant restructuring milestone for one of Zimbabwe’s oldest listed companies.

Meikles said the transaction could qualify as a Category 1 transaction under Section 253 of Statutory Instrument 134 of 2019, requiring shareholder approval before it can be implemented.

“The proposed transaction may constitute a ‘Category 1’ transaction in terms of Section 253 of Statutory Instrument 134 of 2019.

“Accordingly, the company will seek shareholders’ approval for the proposed disposal at an Extraordinary General Meeting (EGM) to be convened in due course,” the statement said.

Under Zimbabwe Stock Exchange regulations, Category 1 transactions are considered significant due to their size relative to the listed entity and therefore require enhanced disclosures as well as shareholder approval.

The company said discussions remain ongoing and cautioned investors against making trading decisions based on incomplete information.

“If concluded, the transaction may have a material effect on the value of the company’s shares.

“Accordingly, shareholders of the company and the investing public are advised to exercise caution or consult their professional advisers when dealing in the company’s shares until a full announcement is made,” Peresuh said.