only shareholders should resolve the dispute pitting its majority
shareholder, John Moxon, and Kingdom Financial Holdings (KFHL) founder Nigel
Chanakira.
Gono had given Chanakira and Moxon an ultimatum to resolve their dispute by
the end of August, threatening the two feuding businessmen with unspecified
action.
In a letter to Gono dated August 23, Meikles chairman Farai Rwodzi said his
board would adopt the wishes of its shareholders when the company holds its
Extraordinary General Meeting (EGM).
Meikles was blocked from holding an EGM by Gono and has not yet indicated
when it will hold the meeting to chart the way forward in its frosty merger.
Meikles said Chanakira, through his company Valley Field (Pvt) Ltd, had
presented three offers which they said were "off the mark" from the initial
agreement.
"In the event of an acceptable offer made before the EGM, such an offer will
be put to shareholders for approval," reads the letter in part.
"Please note an offer can now only be accepted by shareholders. The board
will only adopt what shareholders would have agreed," the letter said.
The EGM's main business would be to amend the terms of the de-merger
resolution adopted by shareholders in June last year, which gave Chanakira a
chance to agree terms with Meikles and Econet Wireless Zimbabwe to acquire
the two investors' equity interest in KFHL.
If shareholders give the nod, the Meikles board would proceed to de-merge
the two entities with Moxon maintaining his 43,9% stake in the group.
Chanakira would be a minority shareholder in Kingdom Financial Holdings Ltd
(KFHL) with a 6% stake.
Moxon would also be entitled to two board representatives as the single
largest shareholder in the financial services company.
Two weeks ago Gono and Finance minister Tendai Biti told Chanakira and Moxon
that they had "had enough of this nonsense" and warned that they would be
forced to take "drastic action".
"We are not sure that either shareholders of Meikles or Kingdom will benefit
in the end," Gono said in a local paper a week ago.
Chanakira could lose KFHL after Meikles Ltd recently rejected his offer to
buy its 43, 95% stake in the firm.
He had been given until August 6 to present an acceptable plan on how he
would raise US$15 million to buy Meikles out of Kingdom.
Meikles said Chanakira's plan of action did not meet their expectations.
The banker had proposed to pay US$7, 5 million within 30 days while the
balance would be settled over six months, saying he had the backing of a
financial institution that he could not disclose to Meikles.
The Meikles board would not accept the proposal saying there was no
guarantee that Chanakira would pay up and that the bank would approve his
loan application.
Insiders at Kingdom yesterday said the KMAL saga had reached a stage where
the two opposing parties spoke to each other and the outcome now depends on
shareholders.
Analysts said RBZ had no formal or official role in the KMAL dispute.
Chanakira's Kingdom Bank entered into a merger with Meikles to form Kingdom
Meikles Africa Ltd (KMAL) which also included Tanganda and Cotton Printers
in 2008.
The merger only lasted for 18 months after major differences between
Chanakira and Moxon emerged, leading to the proposed de-merger.
Gono said the dispute had ceased to be a Chanakira-Moxon matter as they were
jeopardising the stability of the banking sector at a time when the public
"will soon see the decisive resolution to all other outstanding disputes
involving Trust, Royal, Barbican and Intermarket banks as well as other
cases which may have involved allegations of externalisation of funds such
as Shabanie Mashaba Mine".
He alleged both parties in the dispute should be reminded that "none of them
had absolutely clean hands to show to the public of Zimbabwe in terms of
historical conduct".
Paul Nyakazeya
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