Meikles Shares Suspended Amid Corporate Governance Disputes

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HARARE,– Meikles Limited, one of Zimbabwe’s oldest conglomerates, has had its shares suspended on the Zimbabwe Stock Exchange (ZSE) as the company grapples with corporate governance issues.

The suspension, announced on Monday, comes amid escalating tensions between shareholders and board members over the management and strategic direction of the company.

The ZSE said the suspension was necessary “to address corporate governance concerns.” The move highlights growing uncertainty within the company, which operates Pick n Pay Zimbabwe and holds a 50% stake in the iconic Victoria Falls Hotel.

At the heart of the crisis is a dispute over control and decision-making within Meikles Limited. Some shareholders and board members are reportedly at odds over the company’s operational strategy and management structure.

Sources close to the situation indicate that one of the key points of contention is the future of Meikles’ stake in the Victoria Falls Hotel. The company is reportedly exploring the sale of its 50% holding in the hotel, a landmark property located in one of Zimbabwe’s premier tourist destinations. The potential sale has drawn criticism from some shareholders, who argue that the asset is a cornerstone of the company’s portfolio.

Meikles Limited, through its subsidiaries, plays a significant role in Zimbabwe’s retail and hospitality sectors. It operates the Pick n Pay Zimbabwe supermarket chain in partnership with South Africa’s Pick n Pay group and has interests in agriculture and hospitality.

Despite its diversified portfolio, the company has faced growing challenges, including a tough operating environment marked by high inflation, currency instability, and declining consumer spending power.

The corporate governance crisis adds to these challenges, raising questions about the company’s ability to maintain stability and investor confidence.

The suspension of Meikles shares has sent shockwaves through the local investment community. Analysts say the move reflects growing regulatory scrutiny over corporate governance in Zimbabwe’s listed companies.

“Corporate governance is becoming a major focus area for the ZSE as it seeks to maintain investor confidence. This suspension sends a strong signal to listed entities to align with best practices,” said a Harare-based market analyst.

The ZSE has previously taken similar action against companies deemed non-compliant with governance standards, underscoring its commitment to ensuring accountability and transparency among listed entities.

Meikles has yet to issue a formal statement addressing the suspension and the ongoing disputes. However, the company is expected to engage with regulators and stakeholders in the coming days to resolve the issues and chart a path forward.

Investors and stakeholders will be watching closely to see how Meikles navigates this period of uncertainty. With its diverse business interests, the company’s fortunes are closely tied to broader trends in Zimbabwe’s economy, including recovery efforts in the retail and tourism sectors.

The resolution of Meikles’ corporate governance issues will not only determine its future trajectory but may also set a precedent for governance practices among other listed firms in Zimbabwe.