Meikles Limited is considering exiting the hospitality sector after announcing that it is engaged in discussions regarding the potential disposal of its remaining interest in hospitality operations.
In a cautionary statement, the diversified group said the proposed transaction could have a material impact on the company and the value of its shares.
“The Directors of Meikles Limited (‘the Company’) 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,” the company said.
Meikles currently has a 50% stake in the Vic Falls hotel, which it co-runs with African Sun.
If completed, the transaction would mark a significant strategic shift for the Zimbabwe Stock Exchange-listed group, whose operations currently span the retail and hospitality sectors.
Meikles said the proposed disposal could qualify as a Category 1 transaction under Section 253 of Statutory Instrument 134 of 2019. Such transactions require shareholder approval because of their significance relative to the size of the listed company.
“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.
The company noted that discussions remain ongoing and urged shareholders and investors to exercise caution when trading its shares until a further announcement is made.
“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 should consult their professional advisors when dealing in the Company’s shares until a full announcement is made,” Meikles said.
The company has not disclosed the identity of the potential buyer or the value of the proposed transaction. Further details are expected if and when a formal agreement is reached.
