Zimbabwe Stock Exchange-listed conglomerate Meikles Limited is set to open the first Pick’n Pay Supermarket in Kamfinsa, Harare, this month following the injection of $13 million into the group.
The company’s finance director Onias Makamba said plans to set up the South African retail chain in Zimbabwe were at an advanced stage following regulatory approval.
Pick’n Pay received approval from the Reserve Bank of Zimbabwe (RBZ), Competition and Tariff Commission and Youth Development Indigenisation and Empowerment ministry to up its stake in TM Supermarket to 49%.
The deal has enabled TM Supermarkets to access $13 million from Pick’n Pay for refurbishments. The coming on board of Pick’n Pay will increase competition in the retail sector in the country.
“TM Pick’n Pay will open end of this month and we have used part of the $13 million that we received from Pick’n Pay South Africa,” Makamba said.
“We have also started refurbishments at TM Borrowdale that will be followed by TM Mutare, Masvingo and Gweru.”
He said Meikles injected additional funding for the refurbishment of supermarkets. Makamba said the company was refurbishing Meikles Hotel and Victoria Falls Hotel at a cost of $7,5 million and $3 million respectively.
In January this year the Moxon family, the majority shareholder in Meikles Limited consolidated its shareholding in the company through its offshore investment vehicle Gondor Capital Investment to unlock $200 million for the group and the country. The transaction was approved by the RBZ and Exchange Control for the Moxons to swop their shareholding in Meikles Ltd with Gondor Capital Ltd.
John Moxon in January said, they were aware companies in Zimbabwe were generally undercapitalised and most of the potential capital available to alleviate this situation would not be sourced locally.