1. 1 Patterson Chiweshe Karen Frisch Sergio Penchas Denis Rappaport A roaring Zimbabwe lion goes to London

2. 2 Zimbabwe Main Facts n Zimbabwe nation was created in 1980. n Single political party dominance since 1980 with relative political stability. n One of the most diversified African economies-25 % GDP from Manufacturing. n Economy has been previously closed to foreign investment.

3. 3 Meikles Africa Limited n More than a 100 years of established operations. n 4 divisions: supermarkets,hotels, department stores and corporate. n Revenues of U$170 Million in 1996(3.8 % of GDP). n Revenues CAGR (93-96) of 7% in real terms

4. 4 Private Placement n International private placement of US$ 75 Million (33% of company capital) n Why a private deal –Size of the transaction –Sovereign risk –Easier placement to sophisticated investors

5. 5 Discount Factor - Risk Considered n Characteristics of the company n Domestic costs and revenues structure n Low domestic competitive environment n Entry barriers –Strong alliances with South African companies –Proceeds of private placement to highly internally invest

6. 6 Discussion’s Topics n Discount Rate –Risk considered –Time varying discount rates –Terminal discount rates n How to mitigate risks n Additional information required to invest

7. 7Valuation