Chanakira close to regaining KFHL


Nigel Chanakira, the founder of Kingdom Financial Holdings Limited (KFHL) is just $10 million away from regaining control of the financial services group after successfully raising and paying the $22,5 million due to Meikles Limited as part of demerger transactions this month.
The money, through which KFHL is acquiring 8,9% of the banking institution back from Meikles Limited, was paid on June 11, clearing the way for the diversified financial services group to disengage and re-listing on the Zimbabwe Stock Exchange (ZSE) on its own.
The successful conclusion of the demerger transaction will see Chanakira through his investment vehicle Valleyfield investments upping his stake from 2,58% to about 13,4% .
The Meikles family is currently the single largest shareholder of KFHL with a 42,9% stake, followed by a consortium led by Rugare Chidembo with 10% acquired from Econet Wireless Zimbabwe’s EW Capital last year and Old Mutual with 10%.
To regain control of KFHL, Chanakira still has to raise an additional $10 million to buy the rest of the 42,9% stake currently held by the Meikles Family led by John Moxon, the founding chairman of Kingdom Meikles Limited.
After the demerger, Meikles Limited will retain 75% of TM Supermarkets and 100% of Tanganda Tea Company, Thomas Meikles Centre, which holds the hotels division and department stores and Cotton Printers, now in liquidation.
Before the merger in January 2008, Meikles Limited owned 34-35% of KHFL, which it later upped to 42,9% through a $22,5 million financial bailout of KFHL after three financial services operations held by its subsidiary failed to meet the minimum capital requirements set by the Reserve Bank of Zimbabwe.
These divisions included Kingdom Bank, Kingdom Asset Management and Discount Company of Zimbabwe. Daniel Makono, KFHL company secretary yesterday said the banking group had formally requested the Meikles Limited board to effect the demerger and all other due processes.
By yesterday Meikles Limited had neither responded nor acknowledged the demerger transaction. Andrew Lane-Mitchell, company secretary for Meikles Africa Limited, said “We have no comment.”
It doesn’t appear there are any sticking issues in the whole process that may delay the corporate divorce, which sparked one of Zimbabwe’s fiercest corporate disputes in years for the greater part of last year until the belligerents — Moxon and Chanakira — agreed to cease fire.
The transaction is in partial fulfilment of the six demerger resolutions that shareholders of Kingdom Meikles Limited agreed during an extraordinary general Meeting in June last year, that.
The other ones included the resignation of three directors KFHL had seconded to the Kingdom Meikles board.