Meikles Limited assets disposal in limbo amid ongoing governance concerns
The disposal of assets belonging to the Zimbabwe Stock Exchange listed retail and hospitality giant Meikles Limited has been thrown into uncertainty amid ongoing governance concerns and court challenges.
The ZSE suspended the trading of Meikles Limited shares until the governance issues are resolved. This development has cast a shadow over the company’s plans to dispose of certain assets, which could have a material impact on its shares.
The company has issued a further cautionary announcement advising shareholders to continue exercising caution when dealing in the company’s securities until a full announcement is made regarding the disposal of its assets.
The uncertainty surrounding Meikles Limited’s assets disposal has raised concerns among investors and stakeholders, who are waiting for clarity on the company’s future direction.
“Further to the cautionary announcement dated 21 November 2024, the Directors of Meikles Limited wish to advise shareholders that discussions on the disposal of certain of its assets are still in progress which, if successfully concluded, may have a material effect on the Company’s shares.
“Accordingly, shareholders are advised to continue exercising caution when dealing in the Company’s securities until a full announcement is made,” Meikles Limited company secretary Thabani Vusa Mpofu said in a notice to shareholders.
Mashonaland Turf Club, a minority shareholder in Meikles Limited, has since filed a court application seeking relief over alleged corporate governance issues and oppressive conduct by the company’s majority shareholder, Meikles Consolidated Holdings Private Limited.
The club alleges that Meikles Limited’s affairs are being conducted in a manner that is prejudicial to the interests of minority shareholders.
The court documents reveal that the club is contesting several decisions made by the company, including the sale of Meikles Hotel to ASB Hospitality for US$20 million.
It has further emerged that Meikles Limited’s majority shareholder, Meikles Consolidated Holdings Private Limited, allegedly disposed of the company’s shareholding in Victoria Falls Hotel without obtaining the necessary approval from the board.
The directors of Meikles Limited have also issued a statement denying allegations of corporate governance failures and setting the record straight regarding the events surrounding the board meeting of October 1, 2024, which fired CEO Malcolm Mycroft.
