Zimpapers Logo

Oliver Kazunga, Senior Business Reporter
MEIKLES Limited has deferred payment of interim dividend to shareholders that was scheduled for today citing administrative issues relating to the 21-day national lockdown following the outbreak of Covid-19.

President Mnangagwa declared a 21-day national lockdown which started on Monday last week as part of measures to curb the spread of Covid-19.

Official figures from the Ministry of Health and Child Care indicate Zimbabwe has so far recorded 10 confirmed Covid -19 cases and one death.

In a notice announcing the deferment of the dividend payment to shareholders, Meikles Limited company secretary Mr Thabani Mpofu said the interim dividend would now be paid at the end of the month.

Early last month, Meikles Limited declared an interim dividend of 10 ZWL per share.

“The board of directors of Meikles Limited would like to advise shareholders that they will be deferring the payment of the interim dividend as announced in  the dividend notice of 10 March 2020.

“The delay in paying the dividend is due to the current national efforts to contain the spread of Coronavirus, which has led to a national lockdown that has resulted in an inability to effect the normal administrative procedures relating to the payment of the dividend,” he said.

Mr Mpofu said due to the extraordinary circumstances, in consultation with other parties in the dividend payment process, a decision to defer the payment was made.

“The Zimbabwe Stock Exchange granted permission to defer payment to on or about 30 April 2020.

“It is understood that Shareholders will be disappointed by the delay.

“Consideration will be given to a second interim dividend declaration once the lockdown is over to account for the falling value of money through inflation,” said Mr Mpofu.

Meanwhile, in February this year, Meikles announced that a Dubai-based hospitality conglomerate, Albwardy Investments took over full control of Meikles  Hotel in Harare with effect from last month following the disposal of the property for US$20 million.

The transaction means that Albwardy is now running the hotel through the investor’s Zimbabwean investment vehicle, ASB Hospitality.

The disposal of the hotel was completed after the buyer met regulatory approvals, sales and purchase agreements.

The decision to dispose of the hotel emanated from Meikles Hospitality’s self-proclaimed incapacity to mobilise the US$30 million it inevitably needed for the substantial modernisation of guest facilities as well as electro-mechanical and plumbing to restore the hotel to international standards.

Last November, Meikles Limited in a circular to shareholders, highlighted the importance of putting the hotel in the hands of skilled international hotel operators with capacity to undertake the requisite refurbishments.

It is believed that the acquisition of Meikles Hotel by an internationally recognised hospitality group, will help expand Zimbabwe’s reach in terms of tourism and hospitality markets and in the process propel exponential growth of the sector.

In fact, the disposal is a sign that the country’s hospitality industry has opened doors for foreign direct investment in line with “the Zimbabwe is open for business” policy of the Second Republic.

Players in the hospitality industry have commended the disposal of Meikles Hotel which they say is a step in the right direction for the growth of the industry. — @okazunga