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Zimbabwe-based conglomerate Meikles Limited has disclosed that it has postponed the unbundling and the subsequent listing of its tea production unit, Tanganda Tea Company, which the board planned to list separately on the Zimbabwe Stock Exchange.
Tanganda Tea Company is Zimbabwe’s largest distributor of bulk tea and packaged tea, and also produces the bottled spring water, Tinga Mira.
The agro-allied company operates as a wholly-owned subsidiary of Meikles Limited, a leading conglomerate controlled by Zimbabwean businessman John Moxon. The conglomerate maintains a diverse portfolio of hospitality, retail, supermarkets, agriculture and financial services investments.
To unlock value for shareholders and optimize the subsidiary’s operations, the conglomerate disclosed plans to unbundle the operations of the agro-processing subsidiary and has since moved on to classify the tea business as a discontinued operation.
With the planned unbundling and listing scheduled for Dec. 2, Meikles has delayed the strategic action until Dec. 9 to allow time to secure capital gains tax relief from the Zimbabwe Revenue Authority.
In addition to issues linked to the tax relief, a board meeting will be held on Dec. 1 to facilitate the unbundling and listing of the tea business.
The management is also expected to define a strategy that will be implemented after the unbundling process.
As of press time, shares in Meikles were trading at ZWL194.9571 ($0.61) per share, 2.52-percent lower than its opening price on the Zimbabwe Stock Exchange this morning, Nov. 19.
At the current price level, Moxon’s stake in the group is valued at ZWL5.42 billion ($16.84 million), making him one of the wealthiest investors on the Zimbabwean Stock Exchange.
