RNS No 7083p
MEIKLES AFRICA PLC
14th August 1998
                                 
                     Circular to Shareholders
                                 
                     The Victoria Falls Hotel
                                                                  
Meikles  Africa has acquired a half share in the business  of  the
Victoria  Falls  Hotel  and has established  a  partnership  ("the
Partnership")  with  Zimbabwe Sun Limited  to  operate  the  hotel
jointly.  The price paid for this acquisition was Z$347.5  million
and the transaction is effective from 1 April 1998.

The  owner  of the hotel property has agreed to the assignment  of
the current lease to the Partnership.  The lease, which expires on
31  March  2008, affords the lessee the right of first refusal  in
the  event of the sale of the property.  The owner wishes to  sell
the  property and the Partnership has indicated to the  owner  its
interest in acquiring the property.

The  establishment of a hotel operation at Victoria Falls has been
an   important  component  of  the  company's  drive  to   achieve
sustainable  growth  in  medium  term  operating  profits.    This
transaction immediately achieves that objective.  A key aspect  of
the  transaction has been to acquire predominantly  hard  currency
earnings.  Inevitably in the high interest rate environment,  this
acquisition, which has been financed out of local borrowings, will
have  a  negative  short  term impact on earnings.   However,  the
directors anticipate that on an after tax basis, this reduction in
earnings  will be more than offset by the substantial  gains  from
the company's hard currency cash investment, which remains intact.
The impact of the transaction on earnings per share in the current
year  and  on  net asset value is not material.  In the  years  to
come,  it  is expected that the Victoria Falls Hotel will increase
the company's earnings per share significantly.

The  existing infrastructure of the hotel permits an  increase  in
room  capacity.  The intention is to implement this increase which
will  further  enhance  the  hotel's profitability.   Efforts  are
already  underway to attain an ISO 9002 quality certification  and
membership of the Leading Hotels of the World.

The directors of Meikles Africa Limited:

*     are  satisfied  that the acquisition of an  individual  half
      share  of  the operations of the Victoria Falls Hotel justifies
      the consideration paid


*    each  confirm that they have no direct of indirect beneficial
     interest  in  the  transaction beyond their remuneration  and
     their shareholdings in the company,
     details of which were published in the 1998 Annual Report

*    confirm  that the company has sufficient working  capital  to
     meet its requirements for the foreseeable future

*    confirm that there has been no material adverse change in the
     financial and trading position of the company since the  last
     financial year end on 31 March 1998

*    accept  full responsibility for the information contained  in
     this circular and certify that to the best of their knowledge
     and  belief  there are no other facts whose  inclusion  would
     have  rendered  this circular misleading and that  they  have
     taken appropriate steps to ascertain the relevant facts

By order of the Board of                          14 August 1998
Meikles Africa Limited


Enquiries:

Meikles Africa Limited                    Tel: + 263 4 730 611
Andrew Lane-Mitchell, Company Secretary


College Hill                              Tel: + 44 171 457 2020
Nicholas Williams

END

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