HARARE, September 26 (The Source) – Hospitality and retail group Meikles Limited will open up to new investors its hospitality, agriculture and stores divisions as the group restructures to improve operational efficiency, Chairman John Moxon said on Tuesday.
The group operates the TM retail chain with Pick n Pay, department stores, hotels and Tanganda Tea Company.
Moxon said the restructuring would, however, exclude retail chain TM Supermarkets, which is 49 percent owned by South African retailer, Pick n Pay. Meikles holds a controlling 51 percent stake.
He told The Source on the sidelines of the company’s annual general meeting that the group would not unbundle the operations after taking on new investors.
“We are going to open up for other investors who are willing to jointly invest with us in our hospitality, agriculture and in the stores divisions, but this will exclude TM and Pick n Pay supermarkets…. We will maintain our current shareholding in the TM and Pick n Pay supermarkets,” he said.
In the full year ended March, the supermarket unit contributed 90,5 percent to total revenue of $457,6 million, while revenues from other segments plummeted.
Moxon also said the company, which had reached an agreement with the government over a Reserve Bank of Zimbabwe debt which has been outstanding for two decades, will report the amount in its financial statements once everything is finalised.
“The authorities have agreed on the payment of the debt and we are waiting for them to finalise, following that we will report the value in the financial statements…. The amount is just over $42 million,” he said.