Investing in Zimbabwe
A bevy of sleeping beauties on Zimbabwe Stock Exchange for investors with an appetite for risk
A number of Zimbabwe Stock Exchange-listed firms are takeover targets for investors with an appetite for risk
A bevy of sleeping beauties on the Zimbabwe Stock Exchange (ZSE) could become takeover targets for investors drawn by the allure of discounted valuations. Already, blue-chip counter Meikles Africa has become a takeover target. The company owns the Cape Grace Hotel at the V&A Waterfront, a hotel in Harare, department stores, a tea estate and, in partnership with Pick n Pay, TM Supermarkets, the largest retail chain in Zimbabwe. Dubai-based billionaire Ali Albwardy made a bid for Meikles last month. A company is considered a sleeping beauty for reasons including large cash reserves, undervalued real estate, an undervalued share price, attractive assets, and strong growth and earnings potential. Albwardy’s move on Meikles makes investment sense. The group had assets of US$282m in the half-year to September 2016 and liabilities of $155m, implying a book value of $127m. Its market cap represents only 23% of its book value. The Meikles offer is not the only instance in which investors wit...
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