Zimbabwean mogul John Moxon earns $2.47 million as Meikles shares surge to all-time high

Omokolade Ajayi -

Zimbabwean businessman John Moxon has gained ZWL794.2 million ($2.47 million) from his stake in the Zimbabwe-based Meikles Limited.

Aside from his position as chairman of the group, Moxon is Meikles’ single largest individual shareholder, with 27,806,808 issued shares.

The million-dollar gain from his stake can be attributed to the 64-day-long double-digit surge in the share price of Meikles to an all-time high of ZWL93.23 ($0.2895).

Research by Billionaires.Africa revealed that the surge in the group’s share price has seen the market value of Moxon’s stake increase from ZWL1.798 billion ($5.58 million) to ZWL2.592 billion ($8.05 million) between June 1 and Aug. 4.

This translates to a gain of ZWL794.2 million ($2.47 million) for the Zimbabwean businessman.

As of press time, 9:10 AM (UTC), Aug. 4, shares in the Zimbabwe-based conglomerate were trading at ZWL93.23 ($0.290), 267-percent higher than its opening price of  ZWL25.42 ($0.0789) for the year.

Between June 1 and Aug. 4, shares in the group increased from a price of ZWL64.67 ($0.201) to ZWL93.23 ($0.290), accruing a gain of 44 percent for shareholders.

The 44-percent price growth can be linked to sustained buying interest in Meikles shares, as investors price in the impact of the group’s plans to unbundle its tea business.

Subject to shareholder approval, Meikles’ tea business, Tanganda, will be unbundled in the months before the end of 2021 and separately listed. Following the official listing, the spin-off company will cease to have any financial connection with the group.

The transaction, which may have a material effect on Meikles’ shares, has seen the share price increase by double digits since June 1 on the Zimbabwe Stock Exchange.

In its 2021 financial statement, Meikles reported that the group’s profit after tax for the year from continuing operations was ZWL373.3 million ($1.1 million), down from the previous year’s figure of ZWL3.5 billion ($10.9 million).

In his statement to shareholders, Moxon said the base effect from last year’s monetary gain of ZWL4.5 billion ($14 million) compared to the monetary loss of ZWL725.2 million ($2.25 million) in 2021 has led to a reduction in the group’s profit.

He added that the group remains strong and resilient as a going concern and is in a stronger cash position than during the previous year, as its financial position reflects a further enhancement.