On 18 November 2011, the Minister of Youth Development, Indigenisation and Empowerment Hon MP Saviour Kasukuwere, launched the Meikles Limited Employee Share Ownership Trust. “Employee Share Ownership Trusts are one of the designated vehicles for broad-based participation in the implementation of indigenization and economic empowerment programmes”, he said
The Meikles Limited shareholders at an EGM held on 18 August 2011 approved the setting aside of 24 million shares for purchase by the employees through the Employee Share Ownership Trust (“Trust”). The 24 million shares approximate 10% of Meikles Limited’s current issue shares. The Trust is currently in the process of mobilizing finance to acquire the shares. This involves the issue of new shares in Meikles Limited at a price calculated on the basis of the weighted average price of the company’s shares over the thirty (30) days prior to the date of issue. The Trust is regulated by a Trust Deed and governed by a board of Trustees.
In addition to the Trust, the executives and senior managers of the Group including some non executive directors and other indigenous persons currently not involved with the Meikles Group (“consortium”) have formed a special purpose vehicle whose objective is to acquire at least 10% equity in Meikles Limited. The consortium is currently sourcing funds in the market to purchase shares on the stock market. Thus, this arrangement does not involve the issue of new shares by Meikles Limited but that shares will be bought at prevailing market prices from the stock market.
It is conceivable that the employees of the Group could end up with a shareholding of up to 10% in Meikles Limited once the fund raising efforts by the Trust yield the desired result. In addition, the consortium will end up with at least 10% equity in Meikles Limited. Thus, the Group employees including management’s involvement is likely to be a shareholding of at least 20% when the shares are secured by both the Trust and the Consortium.