Merger forms Meikles Africa Group

MEIKLES Africa Limited, Kingdom Financial Holdings, Tanganda Tea Company and Cotton Printers, are set to merge to form Kingdom Meikles Africa Limited Group.

 In a cautionary statement released this week, the companies announced that the boards of the four companies have agreed the share exchange ratios between Meikles Africa and Kingdom and between Meikles Africa and Tanganda with effect from 30 July.

“Shareholders are also advised that the salient terms of Kingdom and Tanganda schemes of arrangement which contains such ratios and the dates of the scheme meetings will shortly be published in the press and scheme documents will also then be sent to shareholders of Tanganda and Kingdom,” reads the cautionary statement.

The companies have also agreed some of the exchange share ratios, moving the dream deal closer to finalisation.

“On the same day that the Tanganda and Kingdom scheme meetings will be held, Meikles Africa will hold an extraordinary general meeting and the salient terms of such meeting will be notified to shareholders on the same date and in the same manner as shareholders of Kingdom and Tanganda are notified of their respective scheme meetings and schemes of arrangement,” the statement said.

The group announced that shareholders representing 86% of the shares in Kingdom, 55% of the shares in Meikles Africa and 58% of the shares in Tanganda have given irrevocable undertakings to support the proposed transaction.

“Following the conclusion of the transaction, the new Kingdom Meikles Africa Limited Group will be in compliance with the proposed Indigenisation legislation.”

The proposed merger of the four companies is one of the major events in the financial sector this year. The four companies share long-standing relationships.

Meikles is the largest shareholder in Tanganda, KFML and Cotton Printers. In Kingdom, Meikles holds a 35 percent stake.

In Tanganda, Meikles holds a controlling stake of 44 percent and has been the largest shareholder since 1943. Meikles is also holds shares in Cotton Printers.

The hotel chain group in Zimbabwe, operates Meikles Hotel, and in partnerships with Zimbabwe Sun Limited, the Victoria Falls Hotel and in South Africa the Cape Grace Hotel.

Post published in: Economy

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