A New Beginning
This release is the second of two releases to Shareholders. The first release focused on the Group’s Retail Division and was published on Monday, 6 October 2014. The second release will focus on providing Shareholders with further information relating to Finance and Outlook as previously set out in the Chairman’s Report for the year ending 31 March 2014.
The Reserve Bank of Zimbabwe has now agreed to release $89 million to Meikles Limited in the form of Treasury Bills. The Reserve Bank of Zimbabwe and the Ministry of Finance are presently completing the administrative processes to facilitate the tenure and yield of these Treasury Bills. Once this process is in place, Shareholders will be provided with full details. The Treasury Bills will be based on terms that are marketable by outright sale or as acceptable security. This is the most significant development for the Group in recent years. The contribution made by Government towards this conclusion is greatly appreciated.
The objectives set out under Finance in the Chairman’s Report shall now progress in terms of implementation.
The Group will utilize its new financial flexibility to implement measures that will enhance Shareholder value. The strategy for the Retail Division has already been released to Shareholders. The previously announced expansion programmes and strategies relating to TM Supermarkets, Tanganda, Hospitality and Mining will continue with greater urgency given that our major financial restraint has been removed.
The Group has an opportunity to restructure its activities in both Zimbabwe and South Africa with a view to securing its affairs in a manner that first and foremost will focus on a strategy to ensure that Shareholders benefit fully from their investment in the Group. Consideration will now be given to how best to achieve this objective. The matter will be approached without any preconceived ideas or ties to past practices, but will focus simply on the requirement of how best to position our diverse group companies to take advantage of the rapidly changing environment for the benefit of all stakeholders. Shareholders will be advised fully of any new developments, which will be progressed with urgency.
By Order of the Board
14 October 2014