HARARE- The Meikles group, a listed diversified concern, has advised shareholders to exercise further caution when dealing with its shares on the stock exchange.
The group said this in a renewed cautionary statement issued on Tuesday by the ZSE and is in line with a previous communication to the effect that the group is seeking to dispose of its flagship Meikles Hotel which is located in CBD Harare.
“Further to the cautionary statement published in the press on 22 February 2019 and subsequent updates on 20 March 2019, 12 April 2019, 2 May 2019, 23 May 2019, 13 June 2019, 4 July 2019 and 25 July 2019, the directors of Meikles Limited wish to advise shareholders that processes are in progress to dispose of the Meikles Hotel” the cautionary reads.
It further went on to give details on the proposed transaction highlighting that ”the company will be seeking 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 to exercise caution when dealing in the shares of Meikles Limited”
The hotel has 312 rooms in 2 luxurious multi storey wings whereas refurbishments and upgrades to restore a 5 star status would fetch as high as $50 million, amounts that are presently beyond the reach of Meikles.
Dubai based, Albwardy Investments which operates a chain of hotels in the middle east and is deep pocketed will take over both the hotel premise and management through its special purpose vehicle Choicebrands which is incorporated in Zimbabwe
The management phase will come as second phase where Choicebrands will acquire the rights to operate the brand name and take over all hotel employees.
In its results for the 12 months period to March 2019, Meikles said the hotel requires substantial modernisation of guest facilities as well as electro mechanical and plumbing infrastructure to restore its 5 Star status.
Meikles considers that it is not in a position to raise the amount and therefore sees it necessary to place its development in the hands of skilled international operators.
Meikles hotel is part of Meikles group’s hospitality arm which also includes the jointly managed Victoria Falls Hotel. The broader group has interests in Agriculture via Tanganda as well retail through TM and TM Pick n Pay.
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