Chiyangwa snaps up KMAL shares

chiyangwaHARARE - Philip Chiyangwa (pictured), one of Zimbabwe's richest and most flamboyant businessmen, has snapped up shareholding in the troubled Kingdom Meikles Africa Ltd.

Kingdom Meikles Africa Ltd and three associates, the Tanganda Tea Co, Thomas Meikle Centre Ltd and Murlis Investments Ltd – were a fortnight ago “specified” under Zimbabwes anti-corruption laws, an order which placed them under state administration. The companies were accused of “externalizing foreign funds,” but legal experts say the specification order is illegal.

Chiyangwa’s surprise buy-in into KMAL – one of the most dramatic in Zimbabwean corporate history – was finalised late on Thursday when a consortium including Rainbow Tourism Group boss, Chipo Mutasa; Rugare Chidembo, a former non executive director in KMAL who is now MD of Chiyangwas Pinnacle Investment;, Zimre Holdings Ltd Chief Operating Officer Solomon Tembo, and businessman Langton Nyatsambo, had bought a 10 percent stake in the group in a deal worth US$27 million.

The deal followed Econet’s announcement Thursday that it had sold its 24 537 480 shares in KMAL at US$0,71. Chiyangwa confirmed the deal Sunday in a telephone interview with The Zimbabwean On Tuesday, but referred further questions to the South African-based Chidembo, who was in Zimbabwe weekend to finalise the deal. Efforts to obtain comment from Chidembo were futile.

Business analysts have questioned how shares of a specified company could be sold and the role of RTG boss Mtasa in the consortium, which raises conflict of interest issues about her huge investment in a rival player in the tourism industry.

Chiyangwa is one of the major shareholders in Zeco Construction, one of Zimbabwe’s largest engineering firms, which has the tender to spruce up the Joshua Mqabuko Nkomo Airport in Bulawayo. Chiyangwa also has significant interests in Pinnacle Properties Holdings Company, Zimbabwe’s largest privately owned property company.

Post published in: Manufacturing

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