Diversified group, Meikles Limited wants to separate its agricultural processing unit, Tanganda Tea Company Limited from the group and list it on the Zimbabwe Stock Exchange (ZSE) in an attempt to unlock value, 263Chat Business has learnt.
The group is currently considering proposals for the spin-off, it reported this morning.
“The Board of Directors of the Company wish to advise shareholders and members of the investing public that the Board is engaged in discussions and is considering various proposals which, if implemented, may have a material impact on the value of the Company’s shares,”
“In this regard the Directors have determined to unbundle from the Company and separately list on the Zimbabwe Stock Exchange the Company’s agricultural processing business, Tanganda Tea Company Limited. To this end the Company has engaged professional advisors. Shareholder approvals will be sought in due course, with these processes running alongside normal year end procedures,” said the Group.
The spin-off, if successful will see the group retain and focus on its hospitality unit which runs the Victoria Falls Hotel and a shareholding in an SA company controlling Cape Grace Hotel, its retail business in TM Pick n Pay and mining activities among other interests.
“Shareholders and members of the investing public are advised to exercise caution and consult their professional advisors before dealing in the Company’s shares until the full details of the transaction(s) are announced or upon withdrawal of this cautionary,” the Group said.
The development follows the old argument by some analysts that should the Group unbundle Tanganda, it stands to unlock more value from the enterprise.
The proposed restructuring also comes after the Group’s disposed the flagship Meikles Hotel In central Harare to Dubai-based Albwardy Investments last year in a deal worth US$ 20 million.
