Harare – Hospitality and retail group, Meikles Limited which is in the process of selling its flagship asset Meikles Hotel, a five-star hotel located in Harare said it has received approval from some of the regulatory authorities for the proposed transaction.
The proposed acquisition of Meikles Hotel to Albwardy Investment, a Dubai based entity has since been approved by the Competition and Tariff Commission (CTC) earlier in June 2019.
Other regulatory approvals required for such deal to go through include the Zimbabwe Stock Exchange, the Securities and Exchange Commission of Zimbabwe, and the Reserve Bank of Zimbabwe.
Once all regulatory approvals have been gathered, the Group will proceed to seek “the approval of its shareholders for the proposed disposal at an Extraordinary General Meeting to be convened at a future date.”
“The Directors advise shareholders of Meikles Limited and the public to continue exercise caution when dealing in the shares of Meikles Limited,” the Group said in a cautionary statement published on November 6, 2019.
The amount at which the hotel is being sold has remained a guarded figure, speculated to be in the region of US$20 million.
Meikles Limited, under the hospitality business, also operates the Victora Falls Hotel in a joint venture arrangement with African Sun and also has a significant shareholding in the Cape Grace Hotel in Cape Town, South Africa.
The broader group has interests in agriculture through Tanganda as well as retail through TM and TM Pick n Pay.
Meanwhile, Albwardy portfolio consists of over 30 highly diversified companies and employs over 5 000 multi-national, multi-lingual staff, supported by a network of global partners.
Its annual turnover exceeds US$1 billion and is highly capitalised to process significant upgrades required at Meikles hotel.
Meikles Limited chairman John Moxon is on record saying the hotel requires about US$30 million to be upgraded to competitive five-star international standards, which the group did not have.
In addition to hotels, Albwardy hospitality also includes investments in lifestyle assets within Dubai, namely The Desert Palm Polo Estate & Residences, Taste Kitchen and Pavilion foods restaurants.
Equity Axis News
Raynold Mhotseka is a Journalism and Media Studies student at the University of Zimbabwe. He serves as a news writer at financial research firm, Equity Axis where he is currently on attachment. He can be contacted through the following email links, email@example.com and firstname.lastname@example.org.