$21m Meikles deal lifts ZSE

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Meikles Limited on Monday recorded the highest special bargain deal in the last 12 months on the Zimbabwe Stock Exchange (ZSE) worth $21 million.

At least 120 million shares were bought at 17,5 cents.
A special bargain occurs when buyers on the stock market purchase a big amount of shares at a special price agreed by the seller. The price will be at a premium of the prevailing trading price.

The Meikles special bargain deal is the third this year following two recorded on January 10 this year for Padenga and Hippo Valley.

Hippo Valleys 394 369 shares were bought at 110 cents each while Padenga 8 million shares were bought at 5,6 cents each.

Analyst said the sailing through of special bargains this year will result in increased turnover for the month.

The Meikles transaction occurred at the same time with the consolidation of the Moxon groups shareholding in Meikles Ltd on Monday this week to its offshore investment vehicle Gondor Capital Investment.

The consolidation of the groups shareholding is expected 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 limited.

Chairman of the Moxon Group, John Moxon, on Monday said the group had received approval from the Reserve Bank of Zimbabwes exchange control to exchange its shareholding in Meikles Limited with Gondor Capital Limited, 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.

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