Largest discount house closed after 50 years in operation

HARARE – Zimbabwe’s largest discount house a subsidiary of Kingdom Financial Holdings has shutdown this week citing viability problems after 50 years in operation.

Discount House of Zimbabwe (DCZ) a subsidiary of Kingdom Financial Holdings (KFHL) will have its licence surrendered to the Reserve Bank of Zimbabwe next week.

In a statement this week KFHL said: “The Discount Company of Zimbabwe struggled to sustain its operations although it managed to obtain a limited dealer licence, which allowed it to raise deposits and lend in US dollars.”

DCZ has been a prominent player in the country’s financial services sector.

Not only is DCZ the first discount house in Zimbabwe, but it is also the oldest remaining discount house in the world.

Kingdom Meikles Ltd (KML) chief executive officer Nigel Chanakira has quit the blue chip company after reaching an agreement yesterday with his bitter rival and largest shareholder, John Moxon, to conclude the firm’s demerger.

The agreement renders today’s extraordinary general meeting (EGM) a non-event.

Chanakira and Moxon have been entangled in a boardroom fight for the control of KML since shareholders agreed to demerge the firm in June. The spat resulted in the specification of KML, Moxon and his family members.

In a joint statement last night Moxon and Chanakira said they reached an agreement to resolve outstanding issues related to the demerger.

Under the agreement, Chanakira ceases to be the chief executive with immediate effect while his board nominees Sibusisiwe Bango and Callisto Jokonya will also exit KML.

“These developments effectively render the EGM scheduled for tomorrow (today) a non-event,” the joint statement read.

The Moxon family represented by John, according to the agreement, would at the time of the Kingdom Financial Holdings Ltd (KFHL) listing swap their KFHL shares for Meikles Africa Limited (MAL) shares and thereafter in time sell their balance in KFHL to Valleyfield Investments and its nominated companies, represented by Chanakira.

“This will result in Valleyfield becoming a significant shareholder in KFHL,” the statement added. “The Moxon family companies will retain their significant shareholdings in the Meikles Ltd post de-merger.”

Moxon and Chanakira said KFHL and Meikles would advise the relevant regulatory authorities about the agreement and apply to have the specification of KML and other parties lifted.

“Both companies will also apply to the Zimbabwe Stock Exchange for the re-listing of their shares. We the undersigned confirm that the negotiations were amicable and showed goodwill which ends the inordinate delay to the de-merger of KML,” the statement said Chanakira should head now KFHL as the current chief executive officer Onias Makamba is expected to leave the financial institution after finally agreeing on a package.