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Meikles will utilise its new financial flexibility to implement measurers that will enhance shareholder value

Conrad Mwanawashe Business Reporter
MEIKLES Limited says the Reserve Bank of Zimbabwe will release its $89 million worth of “marketable” Treasury Bills and this will give financial flexibility to implement the group’s planned expansion programmes.The group has been in discussion with the central bank over the funds but in a notice to shareholders yesterday, Meikles said the authorities have agreed to release the funds.

“The Reserve Bank of Zimbabwe and the Ministry of Finance (and Economic Development) are presently completing the administrative processes to facilitate the tenure and yield of these Treasury Bills,” Meikles said.

“Once this process is in place, shareholders will be provided with full details.

“The Treasury Bills will be based on terms that are marketable by outright sale or as acceptable security,” the group said.

It did not reveal the details relating to the tenure and yield of the TBs that will be issued by the apex bank.

The debt relates to an amount withdrawn from Meikles account during the hyper inflationary era.

Meikles said this is “most significant development for the group in recent years”.

“The contribution made by Government towards this conclusion is greatly appreciated.

The group will utilise its new financial flexibility to implement measures that will enhance shareholder value.

“The previously announced expansion programmes and strategies relating to TM Supermarkets, Tanganda, hospitality and mining will continue with greater urgency given that our major financial restraint has been removed,” said the notice.

It said Meikles now has an opportunity to restructure its activities in both Zimbabwe and South Africa with a view to securing its affairs in a manner that first and foremost will focus on a strategy to ensure that “shareholders benefit from their investment in the group”.

“Consideration will now be given to how best to achieve this objective,” it said.

Recently, Meikles said it expects to conclude a deal with foreign investors who intend to invest in the group’s mining portfolio as the company views the sector as an area of substantial growth potential. The Herald Business revealed last week that the investors, who are expected in the country this week, are eyeing a partnership with the group’s Meikles Centar Mining division.

Meikles has added some string into mining as it views the sector as an area that has potential to add wealth to its growing business portfolio.