ZIMBABWE Stock Exchange-listed Meikles Limited will invest $100 million during the second half of the year to fund activities within the group, an official has said.
BY VICTORIA MTOMBA
In an interview yesterday, Meikles executive chairman John Moxon said the industrial holding company was performing slightly better due to the good team in the company.
“We are looking at anything close to $100 million,” he said.
Moxon said the group had ambitions in the agricultural and hospitality industries.
Meikles has invested in these divisions as well as TM more than $65 million, Moxon said.
“It is not impossible that these divisions could attract substantial potential for development. It is not likely to happen in its entirety before the end of the year, but is very possible progressively over the next 18 months.”
He said part of the funds would be raised internally, but the bulk would come from external sources.
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In its full-year results, Meikles Limited said the second phase of the refurbishment of Victoria Falls Hotel would be complete by 2016.
The group plans to open more mega market stores in Kwekwe, Kadoma, Chinhoyi, Chitungwiza and Bindura. Three major stores will be opened in 2016 and $6,5 million has been set aside for refurbishments.
Meikles is a diversified group with interests in the mining, retail, hospitality, agriculture and financial services sectors.
Moxon said the company that wanted to invest in the group’s mining venture pulled out of the deal to focus on its other investments.
“Our mining venture is slow because our partners are not interested in us and I think they have got other investments in the world. We are looking for other financial partners from anywhere in the world,” Moxon said.
Centar Mining, a Guernsey-based investment group created by former JP Morgan banker Ian Hannam, wanted to partner Meikles in a mining venture. Centar Mining has concessions in Afghanistan and Kazakhstan and had indicated that it would invest $500 million in Meikles mining arm in 2014.
Meikles mining arm purchased 75% equity in a company that owns a number of chrome claims on the Great Dyke.
Meikles reported a loss of $34,4 million for the full year to March 31, 2015 from a profit of $37 million during the same period in 2015.
The company owns Meikles Hotel and co-owns Victoria Falls Hotel.
For the full year in 2014, the hospitality unit posted a 5% growth in revenue to $16,4 million from $15,6 million the previous year.
Meikles said the hospitality unit was affected by the introduction of the 15% value-added tax on accommodation charged to foreigners.
It said at least 75% of its hotel guests were foreigners.
