The Moxon Group has received the Reserve Bank of Zimbabwe’s Exchange Control approval to exchange its shareholding in Meikles Limited (“Meikles”) with Gondor Capital Limited (“Gondor”), a non resident entity. Gondor’s shareholding is 100% held by the Moxon Group which means there is no change in the underlying beneficial ownership of their shareholding in Meikles Limited. This transfer consolidates the Moxon Group’s investment in Meikles Limited into one investment Group, the position that pertained prior to the 2007 Meikles’ merger.
The Moxon Group is aware that companies in Zimbabwe are generally undercapitalised and most of the potential capital available to alleviate this situation will not be sourced locally.
The Moxon Group has entered into the transaction, as notified today to shareholders of Meikles Limited, to facilitate these capital inflows. The objective being to enhance the value of the underlying assets of the Meikles Group, so that the value of the parts add to the value of the entire Meikles Group.
The Group would like to thank all the Government authorities in Zimbabwe and the Reserve Bank of Zimbabwe for their foresight and understanding in supporting and approving the transaction, which in the short to medium term, will mobilise upward of US$200 million for capital investments into Meikles Limited and Zimbabwe.
This transaction is the final stage in the Moxon Group’s efforts, made over a period of time, to support the indigenisation of Meikles Limited and also to provide the structure for substantial investment into Zimbabwe. Any new investment will be done on the basis that Meikles continues to comply with Zimbabwe’s current indigenisation legislation.
Chairman of the Moxon Group