[2007-12-21]  Merger Plan Scuppers Meikles Dividend
MEIKLES Africa Limited has passed a dividend payout due to a pending merger with two other listed entities as well as likely changes in the group's financial year end.

"The directors have decided not to propose a dividend until the merger matters are finalised," said John Moxon, chairman of the Meikles Africa group.


Meikles Africa shareholders this month approved the planned merger of their group with Kingdom Financial Holdings Limited, Tanganda Tea Company and unlisted entity Cotton Printers (Private) Limited to create a new entity called Kingdom Meikles Africa Limited.

Moxon, commenting in a statement accompanying his group's interim financial results for the six months to September 30, 2007, said sanction by the courts of the scheme meetings of Tanganda and Kingdom would provide the final authority for the merger to go ahead.

"Meikles Africa looks forward to participating in the new Kingdom Meikles Africa group, which will provide a very strong asset base for local and regional expansion," Moxon said.

Moxon said the Meikles Africa group, which posted a turnover of $5.2 trillion during the review period against $32 billion during the same period the previous year, had a six months reflecting a "first quarter which was more controllable from an operating point of view and a second quarter which was severely affected by price controls and stock outages".

"Trading conditions for TM Supermarkets were very difficult in the second quarter as the selection of locally manufactured products diminished because of supplier delivery constraints. Stock that could be sourced turned over quickly," Moxon said.

The hotels division had recorded results that were driven by increased occupancies in all three units together with the effect of the exchange rate movement

During the period, Meikles Africa sold its investment in South Africa's Mvelaphanda Group for R52 million, and the funds, said Moxon, were now available for regional investments.

Funds available for investments and other funds amounted to US$45 million.


Source: Copyright © 2007 Financial Gazette.