Meikles Regulatory News (MIK)

21 Aug 2007 07:00

Meikles Africa Ld21 August 2007 MEIKLES AFRICA LIMITED / KINGDOM FINANCIAL HOLDINGS LIMITED / TANGANDA TEA COMPANY LIMITED CAUTIONARY STATEMENT Further to the Cautionary Statements issued by Meikles Africa Limited (Meikles),Kingdom Financial Holdings Limited (Kingdom) and Tanganda Tea Company Limited(Tanganda) on 31 July 2007, pertaining to a "Scheme of Arrangement" of theshareholders of Meikles, Kingdom, Tanganda and Cotton Printers (Private)Limited, shareholders are advised that negotiations are progressing well.Professional advisors have been appointed to prepare all documentation requiredby shareholders and regulatory authorities. Assuming that all regulatory requirements are met and that negotiations aresuccessfully concluded, the intention is that the name of the new consolidatedentity will be Kingdom Meikles Africa Limited (KMAL), the Chairman will be JohnMoxon, and the Chief Executive Officer will be Nigel Chanakira. With the need to keep shareholders informed of the rationale for the proposedconsolidation, and in order to minimize speculation by the media, it can bedisclosed that the following objectives will be achieved as a result of asuccessful consolidation: • The "Scheme of Arrangement" will provide the critical mass which will allow KMAL to raise international capital. • The foreign currency generated by the enlarged Group will be more effectively used in projects which will include: • The fulfilment of Tanganda's capital investment/expansion plans. • The facilitation of Kingdom's regional development. • The multi-million dollar expansion of Victoria Falls Hotel and the refashioning of Meikles Hotel. • With a Group cash positive position, former Tanganda shareholders will be able to enjoy dividends, payment of which has not been possible for some years. • The performance of the enlarged Group will result in efficiencies which will reduce costs, motivate expansion and enhance profits to a level higher than the sum of the individual components to all stakeholders. • The new Group will utilise its enhanced resource base to create synergies within the Group treasuries and to strengthen customer and supplier relationships. Court applications to sanction the calling of Scheme meetings will shortly bemade. Once court sanctions have been granted, "Scheme of Arrangement" documentsand appropriate notices will be sent to shareholders. In light of the above, shareholders are advised to exercise caution when dealingwith their shares. Shareholders will be kept informed on the progress ofnegotiations. BY ORDER OF THE BOARDS A P LANE-MITCHELL F S MAFUNGA S E MAGOMBEDZEFOR THE SECRETARIES FOR THE SECRETARIES FOR THE SECRETARIES MEIKLES AFRICA KINGDOM FINANCIAL TANGANDA TEALIMITED HOLDINGS LIMITED COMPANY LIMITED This information is provided by RNS The company news service from the London Stock Exchange