via Zimbabwe’s Meikles reconsiders new investments after suspension | Reuters Feb 23, 2015
Feb 23 (Reuters) – Hotel group Meikles Africa has put on hold new investment and a possible listing of a subsidiary after the suspension of its shares from trading on the Zimbabwe Stock Exchange, its executive chairman said.
The stock exchange suspended Meikles, which owns two premier hotels in the capital Harare and the resort town of Victoria Falls, last week to allow for an investigation on whether it overstated a debt owed by the central bank.
Executive Chairman John Moxon said in a statement on the company’s website on Feb. 22 that the exchange had not given Meikles an opportunity to defend itself.
Moxon also said the suspension was against the bourse’s listing rules and had put uncertainty into expansion plans by the company which also runs the biggest supermarket chain by branches, TM Supermarkets.
South Africa’s Pik’n Pay Stores Ltd has a 49 percent stake in the supermarket chain.
“The strategy… which was aimed at further expansion in the subsidiaries, the introduction of more investor capital and possibly to even list one subsidiary on the Zimbabwe Stock Exchange are on hold for the time being due to present uncertainty,” Moxon said.
He did not give details but Meikles has started wholesale chain stores, which it planned to expand as well as increase the number of its Pik’n Pay stores from four.
“Meikles will be addressing the implications of the suspension, the manner in which it has been implemented and whether there is any purpose to a listing on the Zimbabwe Stock Exchange,” he said.
The exchange said Meikles reported in its 2014 full year results that it was owed $90.8 million by the Reserve Bank of Zimbabwe, compared with $40.51 million owed by the bank in 2013, without giving an explanation for the sharp increase.
Moxon said the figures were correct and had been a product of painstaking negotiations with the central bank, which he labelled a “delinquent debtor”.
Central bank Governor John Mangudya told Reuters on Monday he had no comment on the matter. (Reporting by MacDonald Dzirutwe; Editing by James Macharia)
COMMENTS
own goal by ZSE !
Which is Meikles’second hotel in Harare? I THINK it may have had shares in Monomatapa at one time but don’t know if this is still the case. Could anyone enlighten me please?
Angela, I also first read it like you did but, on second reading, suspect it is just poor English – I assume it means 2 hotels in 2 locations. Great shame whatever is happening here, Zim needs all the (honest) investment it can get.
@WJC Mac: Thanx – yes. Having re-read that bit I see what you mean. Poor English indeed – even just a simple comma would have done.
Go off the ZSE and set up a private exchange for trading.
A Meikles initiated re-structuring exercise of ZSE in the offing very soon, watch this space for further details. Chairman MOXON is no small boy in Zim. politics.
All this about Meikles accounts and the ZSE is ridiculous.The ZSE cannot just suspend companies if they think their accounts are not correct. It is up to the shareholders of the company to decide that.
Also has anybody with half a brain thought about asking the company’s auditors Deloitte Touche Tohmatsu Limited ( Deloitte ) why they signed off on the accounts ?
It is time for Zimbabwe to get politics out of the business arena or the country is doomed. Looks like Bonyongwe and Chirume are becoming the town idiots !