The Zimbabwe Gazette Daily News Online - Kingdom Meikles Africa Opts Mvelaphanda

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Kingdom Meikles Africa Opts Mvelaphanda

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By Lee Shungu, on March 25 2008 15:36

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Kingdom Meikles Africa Limited says it is taking advantage of synergies and resources across the entities in areas of treasury, foreign currency utilisation, toll manufacturing and property letting, hence the favorable realisation of its investment in Mvelaphanda.

Kingdom Meikles Africa (KMAL) says it has entered into an option agreement, which might include an exchange of assets, to invest in Mentor Africa, a new Pan regional, sub Saharan investment company, subject to all regulatory approvals. “The post Mvelaphanda investment potentials will see the Group expanding into the sub Saharan region, in areas which might include natural resources, telecommunications and hospitality.” “The plans are expected to materialise within the current financial year,” said the Group chairman John Moxon. The much awaited listing of KMAL took place the beginning of this year (in January) with 4500 shares being traded on the first day at an opening price of $22 million. Meikles Africa, Kingdom Financial Holdings, Tanganda Tea Company and Cotton Printers’ recent merger has been cited by the Group’s chairman as successful. Mentor Africa is headed by Stephen Levenberg and Brett Till, former chief executive and financial director of Mvelaphanda, respectively. Moxon emphasises strategies are being formalised that leverage off the strength of the Group balance sheet. “These will focus on capital preservation and financial growth in the case of Kingdom Financial Holdings; refurbishing and upgrade of the hotels division; increasing tea production through mechanisation and expansion of agricultural activities; recapitalising the retail division and revising procurement plans; refurbishing textile machinery to increase throughput especially for yarn exports.”

“Where product and capacity exist, the Group will focus on export earnings growth,” he said. However, many local analysts hint the KMAL merger was embarked on mainly to dilute Meikles’ shareholding in anticipation of the signing of the Indigenisation and Empowerment Bill, ‘which seeks to economically empower blacks in the country.’ Despite signing the Bill, the country’s president Robert Mugabe recently vowed not to intervene or rather take over foreign owned firms. Moxon adds external investments will continue to develop where opportunities arise but in the meantime, the Group is launching capital raising programmes which will provide inflows for local working capital and provide funds for regional expansion. Headed by local businessman, Nigel Chanakira, KAML has significant foreign operations and realises export proceeds from local operations accounting for the required which fairly presents value to all stakeholders. “Accordingly, funds from operations of entities that generate foreign currency are translated at a fair investment rate,” added Moxon. The merger of the four companies is one of the major financial and business events of all time in Zimbabwe. Kingdom Meikles Africa Limited, mainly engages in hotel business and retail trading. The company also operates in divisions such as: hotels, retail and corporate. The firm's retail trading includes department stores, supermarkets and convenience stores. KMAL's operations also entail TM Supermarkets, which is a supermarket chain, Meikles Africa Hotel division, which operates is a five-star hotel group in Zimbabwe, and a department store group that trades under the names of Meikles, Barbours and Greatermans. In Zimbabwe, Meikles Africa Hotel division operates Meikles Hotel, as well as the Victoria Falls Hotel in partnership with Zimbabwe Sun Limited. This division also operates the Cape Grace Hotel in South Africa.

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