Meikles Shares Suspended Due to Corporate Governance Disputes – The Zimbabwe Mail

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

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

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

At the heart of the crisis is disagreement 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 say 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% stake in the hotel, an iconic property located in one of Zimbabwe’s leading 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 is involved in agriculture and hospitality.

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

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

The suspension of Meikles shares sent shock waves through the local investment community. Analysts say the move reflects increasing regulatory scrutiny on corporate governance at listed companies in Zimbabwe.

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

ZSE has previously taken similar action against companies deemed not to comply with governance standards, underlining its commitment to ensuring accountability and transparency among listed entities.

Meikles has yet to release an official statement regarding the suspension and 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 closely monitoring how Meikles navigates this period of uncertainty. Due to its diverse business interests, the company’s fortunes are closely linked to broader trends in the Zimbabwean economy, including recovery efforts in the retail and tourism sectors.

Resolving Meikles’ corporate governance issues will not only determine the future course of the company, but could also set a precedent for governance practices among other listed firms in Zimbabwe.