Zimbabwe: Meikles Defers Dividend Payment Due to Lockdown

7 April 2020

Meikles Limited has deferred payment of interim dividend to its shareholders which was scheduled for April 8 and will now be paid around end of month due to administrative constraints arising from the Coronavirus lockdown, 263Chat Business has learnt.

On March 4 this year, the company declared an interim dividend of 10.0 ZWL cents per share.

In a statement, Meikles announced the suspension of dividend payments citing the process had been affected by the national efforts to fight the dreaded virus.

"The Board of Directors of Meikles Limited would like to advise shareholders that they will be deferring the payment of the Interim Dividend as announced in the Dividend Notice of 10 March 2020. The delay in paying the dividend is due to the current national efforts to contain the spread of Corona Virus, which has led to a national lockdown that has resulted in an inability to effect the normal administrative procedures relating to the payment of the dividend,"

"Due to the extraordinary circumstances that we find ourselves in and with consultation with other parties in the dividend payment process, a decision to defer the payment was made and the Zimbabwe Stock Exchange granted permission to defer payment to on or about 30 April 2020. It is understood that Shareholders will be disappointed in the delay. Consideration will be given to a second interim dividend declaration once the lockdown is over to account for the falling value of money through inflation," company secretary, Thabani Mpofu said in a statement.

Meikles Limited recently disposed its flagship, five star hotel for a figure estimated at US$ 20 million to Dubai-based Albwardy Investment's special purpose vehicle, ASB Hospitality Zimbabwe which subsequently took control of the hotel last month.

Zimbabwe embarked on a 21-day nationwide lock-down against the spread of coronavirus last week and this has led to disruption of many operations as authorities step up efforts to curb a potential health catastrophe.

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