KINGDOM Meikles Africa Group, the conglomerate that will come out of the Zimbabwe’s largest merger so far, is likely to list on the London Stock Ex
change (LSE) in the first quarter of next year.
For now the initial plan to list on Wall Street has been shelved with the focus now on the LSE and the Johannesburg Stock Exchange (JSE), said Nigel Chanakira, who will leave his post as the chief executive of Kingdom Financial Holdings to lead the merged group.
Chanakira told businessdigest this week that the focus has shifted to the LSE and JSE but Wall Street remained “a vision that they will pursue in the future”.
“America is quite far but we are still probing that opportunity. For now the focus will be on London (LSE) and South Africa (JSE),” Chanakira said.
The promoters of the group which will come out of a merger of Kingdom Financial Holdings, Meikles Africa, Tanganda and Cotton Printers have since launched roadshows to sell the idea to international investors.
A team is currently in South Africa to market the project. Another team will be sent to London next week on the same assignment.
The group will be worth between US$250 million and US$300 million once the deal has been officially concluded.
The plan according to Chanakira is to raise a further US$150 million from off shore investors.
Meikles currently has a secondary listing on the LSE. “We want to move towards an actual listing on the main board of the LSE because that is where the money is,” he said. “That is where we will get the funds to drive this new group forward.”
After the merger Kingdom and Tanganda will delist. Shareholders in Kingdom will get 17,6 shares in the new company for every 100 they currently hold. Tanganda shareholders will get 17,2 shares for every 100 they hold.
Asked on the chances that the new company will get foreign investors given Zimbabwe’s high risk profile, Chanakira said the reaction so far has been encouraging.
“We have had positive responses from in London and the interest from South Africa is not that bad.”
Chanakira said there had been a positive response from some Russian and Arabic investors who he said had shown some interest in the project.
The proceeds from off-shore investment will be used to fund Tanganda’s mechanisation, and possible expansions into Mozambique and Tanzania. Cotton Printers will also benefit through equipment renewal.
“Meikles is investing an increased present in Victoria Fall and the money will obviously help,” said Chanakira.