Meikles Limited is planning to pull off Tanganda and make the tea producer a stand-alone entity stating that the estate firm is now in a solid financial and agricultural position.
Meikles owns 100% of the tea producer.
Directors at Meikles have already approved the demerger of assets and liabilities of Tanganda from the hotelier by way of dividend in pursuit of making Zimbabwe’s largest tea producer a stand-alone entity according to a pre-listing statement.
“The Directors also agreed to seek a listing of the Company on the Zimbabwe Stock Exchange (“ZSE”) by way of an Introduction,” the statement reads.
“In terms of the distribution ratio, Meikles shareholders will receive one Tanganda share for every one existing Meikles share held as at the Dividend Record Date. On implementation of the dividend in specie, Meikles shareholders will receive their pro rata portion of 100% of the shares of Tanganda currently held directly by Meikles.”
The tea producer is expected to be listed on the ZSE under the name Tanganda Tea Company Limited.
ZSE indicated approval for the admission of Tanganda to the official listings on or about 2 December 2021.
“The Proposed Transaction will enable Meikles Shareholders to own a direct shareholding in Tanganda,” a circular from Meikles to shareholders reads.
“After implementation of the Proposed Transaction, the demerged Meikles Group will comprise of its interests in retail, hotels, security services, and property-owning businesses and will remain listed on the ZSE and London Stock Exchange (“LSE”) under its existing name, Meikles Limited, with Meikles Shareholders retaining their existing shareholdings in Meikles as at the Record Date.”
Besides tea, Tanganda has developed the largest hectarage of macadamia nuts and avocados in Zimbabwe.
The company’s beverage business also includes water sales.
