Meikles Considers Exit From Hospitality Sector Through Disposal

Meikles Limited, a diversified group listed on the Zimbabwe Stock Exchange, is contemplating a significant strategic pivot by potentially divesting its remaining interests in the hospitality sector. The company announced it is engaged in discussions regarding the disposal of these operations, a move that could materially affect its business and the value of its shares.

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The Directors of Meikles Limited ('the Company') wish to advise shareholders and the investing public that the Company is currently engaged in discussions relating to the potential disposal of its remaining interest in hospitality operations.

In a cautionary statement, Meikles indicated that the proposed transaction might be classified as a Category 1 event under local regulations, necessitating shareholder approval. This classification highlights the substantial nature of the potential sale relative to the company's overall size.

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The proposed transaction may constitute a 'Category 1' transaction in terms of Section 253 of Statutory Instrument 134 of 2019. Accordingly, the Company will seek shareholders' approval for the proposed disposal at an Extraordinary General Meeting ('EGM') to be convened in due course.

Currently, Meikles holds a 50% stake in a Victoria Falls hotel, which it manages jointly with African Sun. The specifics of the potential buyer and the transaction's value have not been disclosed. Shareholders and the investing public are advised to exercise caution when trading Meikles shares until further announcements are made, as the outcome of these ongoing discussions remains uncertain.

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If concluded, the transaction may have a material effect on the value of the Company's shares. Accordingly, shareholders of the Company and the investing public are advised to exercise caution or should consult their professional advisors when dealing in the Company's shares until a full announcement is made.