Analyst urges shareholders to question Meikles’ Victoria Falls Hotel U-turn

Fresh questions have emerged over Meikles Limited’s strategic decision-making after the company moved to sell its remaining hospitality interests barely six months after its board concluded that the Victoria Falls Hotel should remain part of the group’s portfolio.

Capital markets analyst Kennedy Ndoro said the reversal raises important corporate governance questions that shareholders should consider before voting on the proposed disposal.

“In December 2025, the Meikles board concluded that the Victoria Falls Hotel should remain in the portfolio. Six months later, the same board is asking shareholders to approve its disposal,” Ndoro said.

He acknowledged that businesses operate in a volatile environment where strategies may need to change but argued that investors deserve a clear explanation for such a significant shift.

“We appreciate that businesses operate in a VUCA environment. Circumstances evolve and boards must adapt. But are these strategic pivots underpinned by data, rigorous analysis and transparent reasoning?” he said.

Ndoro questioned whether the change reflected genuinely new information or pointed to weaknesses in strategic planning, due diligence and capital allocation.

He also drew attention to Meikles’ corporate history, noting that the group’s 2007 merger with Kingdom Financial Holdings to form Kingdom Meikles Africa Limited later unravelled, raising broader governance concerns.

“Should shareholders therefore ask whether the board is providing robust, independent oversight or it is primarily endorsing management’s recommendations?” he said.

According to Ndoro, the issue extends beyond the proposed disposal of the Victoria Falls Hotel.

“The quality of a board is not measured by the number of transactions it approves. It is measured by the quality of its judgement, the rigour of its challenge and its willingness to hold management accountable,” he said.

“Given this business’ history with governance, the issue becomes larger than the Victoria Falls Hotel. It is whether shareholders have confidence in the board’s strategic judgement and the integrity of its decision-making process.”

His remarks come after Meikles issued a further cautionary statement advising shareholders that discussions over the potential disposal of its remaining hospitality operations are continuing.

The company said the proposed transaction could constitute a Category 1 transaction under Section 253 of Statutory Instrument 134 of 2019, requiring shareholder approval at an Extraordinary General Meeting to be convened.

Meikles warned that if concluded, the transaction could have a material effect on the value of its shares and advised shareholders and the investing public to exercise caution when dealing in the company’s stock until a full announcement is made.

The company has not disclosed the reasons behind the change in strategy or identified the prospective buyer, saying only that negotiations are ongoing.