Listed hospitality giant, Miekles Limited Group, has urged its shareholders to exercise caution when trading the company shares ahead of the imminent takeover of its Harare-base entity; Miekles Hotel by a Dubai headquartered company, Albwardy Investment.
The takeover deal reportedly to be around the region of US$ 20 million is at an advanced stage pending shareholder approval at an extra-ordinary general meeting set to take place soon.
This follows approval by the regulator, Competition and Tariff Commission for the sale earlier this year.
“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 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,” read the Group cautionary statement published on the Zimbabwe Stock Exchange today.
The company is ranked sixth by value on the bourse.
Miekles Hotel is an iconic five star hotel located in Harare with a rich historical opulence spanning back to 100 years ago but lack of adequate resources to refurbish it is among the major reasons the Miekles Group has taken the decision to dispose it.
Last year the Group highlighted that it had its liabilities and debts combined in excess of US$ 240 million hence this rendered it incapacitated to make major face lifts to the Hotel.
Through this sale, the Group intends to raise funds to invest in its other hospitality interests that include the Victoria Fall Hotel and Cape Grace Hotel in Cape Town.
“Meikles Hotel now requires substantial modernization of guest facilities as well as electro-mechanical plumbing infrastructure to restore it to a five-star property by international standards,” Miekles Group chairman, John Moxon said in a statement accompanying the group’s financial results for the year ended March 2019.
Miekles Limited Group also owns retail giants such as TM, Pick’n Pay, Meikles Stores and tea producing entity, Tanganda Tea Company.