Meikles Limited has moved to dispose of its entire hospitality interest through the sale of a fifty percent undivided stake in the Victoria Falls Hotel Partnership to African Sun Limited for fifteen million United States dollars, marking a strategic exit from the hospitality business.
The interest is held through Meikles Hospitality, a wholly owned subsidiary of Meikles, which currently partners African Sun Zimbabwe in leasing and operating the 149-room five-star Victoria Falls Hotel. The hotel, located in a prime position overlooking the Victoria Falls, is owned by Emerged Railways Properties and is operated under a lease that runs to 31 October 2036 with an option to renew for a further ten years. Under the lease, the partnership is obliged to fund a major refurbishment programme to sustain the property’s competitive positioning, a requirement that has now been finalised in discussions with the landlord.
According to a circular to shareholders published on 9 October 2026, the transaction will be implemented through a partnership interest cession and transfer agreement, with African Sun being admitted as a partner in place of Meikles Hospitality as a going concern. The deal is classified as a Category One transaction under Zimbabwe Stock Exchange listing requirements and is therefore subject to shareholder approval.
To give effect to the disposal, Meikles shareholders have been convened to an Extraordinary General Meeting to be held virtually on Friday 30 October 2026, immediately following the Annual General Meeting set for 0900 hours on the same day. The last day for registration for voting and for lodging proxy forms with ZB Transfer Secretaries in Avondale, Harare, is Wednesday 28 October 2026 at 0900 hours for proxies and 1600 hours for registration, with results of the meeting due to be published on 2 November 2026.
The purchase consideration of fifteen million dollars plus applicable Value Added Tax will be settled in three equal instalments of five million dollars each. The first instalment is payable within ten business days of signing into the trust account of Mhishi Legal Practice, acting for Meikles, and will be released upon the effective date. The second instalment is due on or before 31 December 2026 and the final instalment on or before 31 March 2027. The effective date will be the first day of the month following fulfilment of all conditions precedent.
As security for the deferred payments, African Sun is required to deliver an irrevocable on-demand bank guarantee of five million dollars and to provide a signed irrevocable Special Power of Attorney from its subsidiary Gold Coast Properties authorising registration of a five million dollar mortgage bond over the Hwange Safari Lodge Estate, a 42.8939 hectare property in the District of Wankie held under Deed of Transfer Number 30 of 2012.
Implementation remains conditional on shareholder approval at the EGM, ZSE approval, notification to the Competition and Tariff Commission within thirty days of signature, payment of the first tranche, delivery of the guarantee and bond documents, and any other regulatory consents.
Meikles has indicated that proceeds will be applied towards retiring four million dollars in short-term borrowings, seven point eight million dollars towards retail expansion, and three point two million dollars towards corporate office rationalisation, transaction taxes, costs and working capital. Transaction expenses are estimated at 188,500 dollars.
On a pro forma basis as at 28 February 2026, the disposal is expected to improve basic and diluted earnings per share from a loss of 50.56 ZWG cents to a profit of 75.65 ZWG cents, representing a 249.7 percent improvement, while headline earnings per share remain unchanged.
Following the disposal, Meikles will focus on its retail business through its 51 percent shareholding in TM Supermarkets, which operates 60 stores under TM and Pick n Pay brands, its property portfolio under Thomas Meikle Properties comprising 23 properties with 69,520 square metres of gross leasable area, and its security services business which employs 676 guards.
The group currently carries a four million dollar secured short-term facility at 13 percent per annum for refurbishment of a Bulawayo property and a one million dollar facility from Barak SPC Fund Limited which is pending Exchange Control regularisation, while Meikles Consolidated Holdings owes the group 11.7 million dollars payable by 30 June 2028 and secured by pledged shares and investments. Directors have confirmed that post-disposal the group will have sufficient working capital for twelve months and remain cautiously optimistic on the back of improved macroeconomic stability and growth in mining and agriculture expected to support retail demand.
