Business / Companies
Meikles to delist from Zimbabwe Stock Exchange
09 Mar 2017 at 05:24hrs | Views
Zimbabwe Stock Exchange listed conglomerate, Meikles Limited is currently involved in discussions over a transaction which will culminate in a possible offer to minorities and subsequent delisting from the Zimbabwe Stock Exchange.
Well placed sources said that the group was in talks with an international investor over a possible partnership. In a cautionary statement published yesterday, Meikles said it was in discussions over a possible transaction.
"The directors of Meikles Limited wish to advise shareholders that the company is currently engaged in discussions on a transaction that may have material impact on the value of the company's shares."
"The transaction relates to a possible offer to minorities and subsequent delisting of the company from the Zimbabwe Stock Exchange in line with Section 9 of the ZSE Listing requirements," said company secretary Thabani Mpofu in a cautionary statement released yesterday.
A source close to the transaction told The Herald Business that the diversified has been approached by an investor with a possible offer to minority shareholders being part of the plan.
"Meikles Limited has been approached by an investor who has confidence in the Zimbabwean investment landscape. Once the deal goes through, the investor will facilitate the restructuring and financing of the group, which also entails making an offer to minorities," said the source.
If the transaction to de-list goes through, Meikles will join other former ZSE counters Radar Holdings, Astra Industries and Phoenix Consolidated Industries who all de-listed due to various reasons.
The diversified group boasts of Meikles Hotel, TM/Pick n Pay, Meikles Mega Market, Tanganda and Barbours.
Recently, the group said TM/Pick 'n' Pay has started identifying existing TM stores across the country to upgrade them into world class stores following the launch of a $25 million state-of-the- art shopping complex in Borrowdale.
Speaking on the sidelines of the official opening of the Borrowdale shopping complex, TM/Pick n Pay managing director Malcom Mycroft said the retail group has just launched a first generation shopping mall which is a first in Zimbabwe.
"What you see is what we call a first generation Pick 'n' Pay and it is a first in Zimbabwe. It is also part of our new village walk developments in Borrowdale.
"For us this $25 million development which includes stores and the car park shows the confidence that Pick 'n' Pay has in the country and also in our local partners," said Mr Mycroft.
The current relationship with Pick 'n' Pay has been enhanced to encompass the sharing of technical expertise and sourcing of product brands from South Africa to complement the Zimbabwean range in an effort to meet and exceed customer expectations.
"The retail chain has a footprint of 56 stores and we are going to identify stores that we can convert into Pick 'n' Pay but we want to give you assurance that the TM brand will never disappear,
"TM is a core retail brand in Zimbabwe that is why we decided to partner it," said Mr Mycroft.
Source - the herald