Harare — MEIKLES Africa Limited are playing their cards close to the chest despite the announcement by Kingdom Financial Holdings that it has paid US$22,5 million to pave way for the demerger of the two parties.

Kingdom confirmed at the weekend that it had met its side of the bargain and that the divorce should be finalised.

Meikles Limited chief executive Mr Brendan Beaumont refused to comment when contacted.

Board chairman Mr Farayi Rwodzi and the company's public relations consultant could also not be reached at the time of going to press.

The Kingdom board has gone on a charm-offensive, entreating the Meikles Limited board to now effect the demerger.

Kingdom said the financial group had "fully" discharged its obligations by transferring the funds to Meikles Limited.

Accordingly, the bank said the demerger would be completed by the end of the third quarter of the year.

The agreement was that former Meikles chairman Mr John Moxon would dispose of his 43 percent stake in Kingdom for shares in Meikles and thereafter sell the balance to Mr Chanakira.

"KFHL has fully discharged its obligation by transferring the US$22,5 million back to the parent company Meikles Limited effective June 11, 2010.

"The KFHL board has formally requested the Meikles Limited board to now effect the demerger in line with the said resolutions," read part of Kingdom's statement.

Analysts this week said the demerger could still go ahead after Mr Chanakira settled the US$22,5 million, which was lodged with the Reserve Bank of Zimbabwe.

They (analysts) said Mr Moxon would maintain his 43 percent stake in Kingdom, which can be disposed of later.

This will however, mean that Mr Moxon can make appointments to the Kingdom board while Mr Chanakira will remain a six percent shareholder in both KFHL and Meikles Limited.

Meikles Limited has not issued any statement after the grace period to find an amicable solution lapsed on May 31.

However, this could indicate that they are not agreeing with KFHL claims that it had fully discharged its obligations.

Meikles shareholders had given its board a task to find an amicable solution before May 31 after Mr Chanakira failed to meet the initial deadline that was set for April 21, 2010. It is alleged that Mr Moxon is adamant that Mr Chanakira has to raise additional funds to buy him out.

Mr Moxon is the major shareholder in KFHL and had earlier indicated that Mr Chanakira had to raise the US$22,5 million and additional cash equivalent to his 43 percent stake.

A successful demerger will result in the separate listing of KFHL and Mr Chanakira through his investment vehicles becoming a major shareholder in the financial group. The group formally Kingdom Meikles Africa Limited after the merger between Meikles Africa, Tanganda Tea and Kingdom Financial Holdings Limited made headlines following a fallout between former chairperson, Mr Moxon and chief executive, Mr Chanakira.

By Staff reporter and agencies