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Kingdom de-merger awaits approval

by Byo24NEWS
19 Jan 2011 at 04:11hrs | Views
THE final demerger of Kingdom Financial Holdings Limited from Meikles Limited is now awaiting regulatory approvals from the Ministry of Youth Development, Indigenisation and Empowerment.

Meikles Limited chief executive Mr Brendan Beaumont said the two parties were waiting for the necessary regulatory approval after the capital reduction process was approved.

"The approval to demerge that business is pending from the Ministry of Indigenisation and Empowerment, as is that from the Reserve Bank of Zimbabwe regarding the dividend in specie to shareholders," said Mr Beaumont. Approval from the regulatory authorities would give Kingdom the green light to separately re-list on the Zimbabwe Stock Exchange.

According to the terms and plan agreed between Kingdom and Meikles, the former's founder, Mr Nigel Chanakira, would swap his 6 percent stake in Meikles for Mr John Moxon's 43 percent in Kingdom. He would thereafter pay a cash adjustment equivalent to 3 percent of the value of shares held by the Loackcape Consortium in Meikles.

Loackcape is a local consortium that acquired Econet's 10 percent stake in Meikles during the shareholder squabbles in Meikles Limited.

The deal has to meet the country's indigenisation thresholds that require locals to hold a 51 percent stake in entities with thresholds above US$500 000.

According to the initial terms of demerger, Mr Chanakira was supposed to swap his 6 percent shareholding in Meikles for part of the Moxon family's 43 percent in Kingdom then pay for the difference.

Kingdom, Tanganda, Cotton Printers and Meikles merged in 2007 to form Kingdom Meikles Africa Limited.

The marriage was short-lived after irreconcilable differences developed between Mr Chanakira and Mr Moxon over the disposal of Cape Grace Hotel in South Africa.

Source - Byo24NEWS

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