Meikles to unbundle properties portfolio

MEIKLES Limited plans to unbundle its properties portfolio as the group seeks to unlock and enhance shareholder value.

The diversified concern this year concluded the unbundling of its wholly-owned subsidiary, Tanganda Tea Company, which is now in a strong financial position and well set to sustain itself going forward.

In the 2021 annual report released last week, Meikles indicated that it was unbundling its large properties portfolio and strategic initiatives were being explored to facilitate the planned move.

“Strategic alternatives are being examined on how best to unbundle properties and to provide an opportunity for shareholders to enhance value.

“The status of the hospitality assets is yet to be decided, but a strategy to unlock and enhance shareholder value will be determined,” it said

It is envisaged that Meikles Limited would focus on the retention of its investment in the retail sector, particularly supermarkets, trading as TM Pick n Pay.

At present, the group has interest in investments such as agriculture, hospitality, retail, and security services. Last year, a Dubai-based conglomerate, Alwbardy acquired Meikles Hotel in Harare under a US$20 million transaction.

During the period under review, the group’s revenue grew by three percent to $28,4 billion from $27,6 billion in 2020.
The group’s operating profit from continuing operations was $878,3 million reflecting a two percent decrease from $894,5 million in the prior year.

“Group profit after tax for the year for continuing operations was $373,3 million, down from the previous year of $3,5 billion.

“Included in the previous year’s profit is a monetary gain of $4,5 billion, whereas the year under review has recorded a monetary loss of $725,2 million, a decline of $5,2 billion from the previous year.

“A significant portion of the group’s monetary assets are denominated in foreign currency with the result that the monetary adjustments related to technicalities of inflation accounting, as opposed to a real loss of value,” said the group. — The Chronicle