Moxon consolidates Meikles shareholding

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The Moxon group has consolidated its shareholding in Meikles Ltd to its offshore investment vehicle Gondor Capital Investment, to unlock $200 million for the group and the country.

The group had JRMT Investments with 8,7%, Ash investments 8,6%, ACM Investments 8,5%, APWM 8,6% and FPS Investment 8,6% in Meikles Ltd.

Chairman of the Moxon group, John Moxon, in a statement, said approval had been granted by the Reserve Bank of Zimbabwes Exchange Control to swop its shareholding in Meikles Ltd with Gondor Capital Ltd, a non-resident entity.

Gondor is 100% held by the Moxon group. This transfer consolidates the Moxon groups investment in Meikles into one investment group the position that pertained prior to the 2007 Meikles merger, said Moxon.

The Moxon group is aware companies in Zimbabwe are generally undercapitalised and most of the potential capital available to alleviate this situation will not be sourced locally.

He said the transaction will mobilise in the short to medium term $200 million for capital investments in Meikles Ltd and Zimbabwe.

Moxon said: This transaction is the final stage in the Moxon groups efforts, made over a period of time, to support the indigenisation of Meikles Ltd and also to provide the structure for substantial investment into Zimbabwe.

Any new investment will be done on the basis Meikles continues to comply with Zimbabwes current indigenisation legislation.

Meikles Ltd is set to embark on a $7,5 million refurbishment exercise of its five-star Harare Meikles Hotel in March this year.

The hotels north wing will be closed for nine months to allow for the complete overhaul.

In 2011 the hotel undertook upgrades and improvements including installation of flatscreen televisions in all rooms and suites, acquisition of new banqueting furniture and equipment, painting of the exterior of the hotel and remodelling of the principal banqueting venue, the Stewart Rooms.