Meikles contests assets auctioning

Harare – Hospitality group, Meikles Limited through the Zimbabwe Stock Exchange on Tuesday announced that Wide Free Investments t/ a Core Solutions proceeded to auction certain assets of the Group, on the 24th of December 2018.

The assets relate to Meikles Limited’s investments in Tanganda Tea Company Limited and Meikles Hospitality (Private) Limited.

According to the Company’s financial results for the six months ended September 30, 2018 its assets in agriculture (Tanganda Tea Company) amounted to $89 283 000 whereas those in the hotel segment (Meikles Hospitality) amounted to $46 917 000.

This auction is being contested in the Supreme Court, the outcome of which is pending. The attachment and subsequent auctioning of the assets was as a result of a heavily contested arbitral award of $1.5 million to Core Solutions.

This matter is before the Court under case number (SC 988/ 1 8). In addition to contesting the auction in the Supreme Court, Meikles Limited has appealed against the arbitral award in the High Court. The outcome of the appeal against the arbitral award is pending.

Meikles said it has put other measures in place to ensure Company assets are safe and shareholder value is protected.

Meikles Limited is a Zimbabwe-based company, which is principally engaged in agriculture, hotels and retail trading.

The Company operates in six business segments: hospitality, stores, including departmental stores and wholesaling, supermarkets, agriculture, financial services, and security services.

Its brands include Meikles Hotel, Victoria Falls Hotel, TM Supermarkets, Meikles Stores, Tanganda Tea and Meikles Guard Services.

Meikles operates its departmental stores in three cities in Zimbabwe and its Barbours departmental store in Harare. The Company’s retail supermarket chain has approximately 50 branches.

Its subsidiaries include Tanganda Tea Company Limited and Meikles Guard Services (Private) Limited. Tanganda Tea Company Limited is a producer, packer and distributor of tea products in Zimbabwe. Meikles Guard Services (Private) Limited provides security service across Zimbabwe.

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