HARARE - The acrimonious divorce between the flamboyant Kingdom Financial Holdings Limited (KFHL) Group and the wealthy Meikles Africa Limited (MAL) has now been completed - brining to an end among one of the most famous business failures in Zimbabwe.
Kingdom and Meikles married about two years ago in what was then said to be a “marriage made in heaven” by financial and business analysts.
However, about one year later, the two institutions decided to go their separate ways after mogul and top banker, Nigel Chanakira, and his business buddy the cash-rich, John Moxon, decided to go different ways over an investment in a hotel in South Africa.
The Kingdom Board this week told shareholders that the tiff was now over and they would soon relist on Emmanuel Munyukwi’s Zimbabwe Stock Exchange (ZSE). “Shareholders are advised that the demerger of Kingdom Financial Holdings Limited (KFHL) from Meikles Africa Limited (MAL) has now been completed. The final step of the demerger process was the distribution of a dividend in-specie of KFHL shares to all MAL shareholders as at the record date of 29 October, 2010. It is our belief that all eligible shareholders have received their KFHL shares and if not, they will be receiving them soon,” says a statement from the Board.
KFHL is now set to re-list on the ZSE once the procedural requirements that go with this process were completed.
Kingdom was founded by tycoon Chanakira, Franky Kufa, insurance guru, Lysias Sibanda, and top dealer, Solomon Mugavazi, wholater quit to form his own business enterprise.
Sibanda and Mugavazi jointly own former Premier Soccer League (PSL) Champions, Monomotapa Football Club (Monos).
The KMAL share had been struggling on the bourse and stock brokers had actually recommended the divorce which was effected last year after a nasty exchange of words between Chanakira and Moxon.
At the time of the divorce, Kingdom had borrowed US$34 million from Meikles to recapitalise its flagship Kingdom Bank Limited (KBL).
The MAL share price this week stood at US$0.53 having increased from US$0.50 during the previous week.
MAL currently has a market capitalisation of some US$122 367 664.72 which is among the most heavily capitalised and diversified firms on the ZSE today.
“The Board of KFHL wishes to extend its appreciation to all shareholders for steadfastly standing by the Kingdom brand during the demerger process,” the Board told shareholders.
“As a stand-alone business entity, KFHL promises to vigorously pursue its strategic goals anchored at being the number one provider of financial services in its chosen markets, and deliver satisfactory returns to all stakeholders.”
KFHL is currently led by Lynn Mukonoweshuro. Its chairperson is Empretec (Private) Limited boss, Susan Bango.
Post published in: Manufacturing